Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both decreased compared to the prior quarter and the same quarter last year. Free cash flow turned positive from a negative position a year ago, though it was lower than the immediately preceding quarter.
- Operating cash flow as a proportion of revenue was lower than the prior quarter but higher than the same quarter last year. Capital expenditure decreased relative to both comparison periods, contributing to a free cash flow margin that improved from negative a year ago but weakened from the prior quarter.
- Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin were all lower. Compared to the same quarter one year earlier, revenue and operating cash flow were lower, capital expenditure was lower, and free cash flow and free cash flow margin improved from negative to positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$427.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.1B
Cash generated by operations before capital spending.
CapEx
$674.0M
Capital spending and related asset purchases.
FCF margin
1.7%
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 |
|---|---|---|---|---|---|
| 2023-07-29 | $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% |
| 2024-05-04 | $24.5B | $1.1B | $674.0M | $427.0M | 1.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 45.3% | 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.
Capital Expenditure Reduction
Capital expenditure was lower than both the prior quarter and the same quarter last year. This reduction was the strongest observable driver supporting the shift from negative free cash flow a year ago to positive free cash flow in the current quarter.
Lower capital expenditure directly improved free cash flow despite lower operating cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue was lower than the prior quarter but higher than the same quarter last year. Capital expenditure decreased relative to both comparison periods, contributing to a free cash flow margin that improved from negative a year ago but weakened from the prior quarter.
Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin were all lower. Compared to the same quarter one year earlier, revenue and operating cash flow were lower, capital expenditure was lower, and free cash flow and free cash flow margin improved from negative to positive.
Monitor the trend in operating cash flow, which declined from both the prior quarter and the year-ago quarter.