Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow rose compared to the prior quarter, driven by higher operating cash flow and lower capital expenditure. Versus the same quarter last year, free cash flow was slightly higher despite a modest decline in operating cash flow, aided by reduced investment in property and equipment.
- Revenue increased versus the prior quarter, and operating cash flow improved, resulting in higher free cash flow and an improved free cash flow margin. Compared to the year-ago quarter, revenue was marginally higher while operating cash flow was lower, yet reduced capital expenditure supported a slightly higher free cash flow margin.
- Free cash flow and free cash flow margin both improved sequentially, with revenue rising and capital expenditure declining. Year-over-year, free cash flow was slightly higher and the free cash flow margin improved modestly, as lower capital spending offset a small dip in operating cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.4B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.3B
Cash generated by operations before capital spending.
CapEx
$854.0M
Capital spending and related asset purchases.
FCF margin
7.6%
The share of revenue converted into free cash flow.
Cash flow trend
A short quarterly history shows whether FCF is scaling with revenue or only spiking for one period.
| Period | Revenue | Operating CF | CapEx | FCF | FCF margin |
|---|---|---|---|---|---|
| 2023-04-29 | $25.3B | $1.3B | $1.6B | -$340.0M | -1.3% |
| 2023-07-29 | $24.8B | $2.1B | $1.2B | $913.0M | 3.7% |
| 2023-10-28 | $25.4B | $1.9B | $1.1B | $807.0M | 3.2% |
| 2024-02-03 | $31.9B | $3.3B | $854.0M | $2.4B | 7.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 176.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Reduced capital expenditure
Capital expenditure was lower both sequentially and year-over-year, contributing to higher free cash flow and an improved margin despite mixed operating cash flow trends.
Lower investment in property and equipment directly enhanced free cash flow generation this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased versus the prior quarter, and operating cash flow improved, resulting in higher free cash flow and an improved free cash flow margin. Compared to the year-ago quarter, revenue was marginally higher while operating cash flow was lower, yet reduced capital expenditure supported a slightly higher free cash flow margin.
Free cash flow and free cash flow margin both improved sequentially, with revenue rising and capital expenditure declining. Year-over-year, free cash flow was slightly higher and the free cash flow margin improved modestly, as lower capital spending offset a small dip in operating cash flow.
Monitor the trend in operating cash flow, as it softened year-over-year despite stable revenue.