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 increased compared to the prior quarter and the same quarter last year. Free cash flow improved significantly versus both periods, supported by higher operating cash flow and lower capital expenditure.
- Operating cash flow as a proportion of revenue was higher than the prior quarter and similar to the year-ago quarter. Free cash flow margin improved compared to both the preceding quarter and the same quarter one year earlier, driven by higher operating cash flow and lower capital expenditure.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, while capital expenditure was lower. Versus the same quarter one year earlier, revenue and free cash flow were higher, operating cash flow was stable, and capital expenditure was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.6B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.2B
Cash generated by operations before capital spending.
CapEx
$639.0M
Capital spending and related asset purchases.
FCF margin
6.3%
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 |
|---|---|---|---|---|---|
| 2023-10-28 | $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% |
| 2024-08-03 | $25.5B | $2.2B | $639.0M | $1.6B | 6.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 134.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.5% | 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.
Higher Operating Cash Flow
Operating cash flow increased compared to the prior quarter and was stable versus the year-ago quarter, providing the primary support for the improvement in free cash flow.
The higher operating cash flow, combined with lower capital expenditure, drove a stronger free cash flow margin.
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 higher than the prior quarter and similar to the year-ago quarter. Free cash flow margin improved compared to both the preceding quarter and the same quarter one year earlier, driven by higher operating cash flow and lower capital expenditure.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, while capital expenditure was lower. Versus the same quarter one year earlier, revenue and free cash flow were higher, operating cash flow was stable, and capital expenditure was lower.
Monitor the trend in capital expenditure, as it was lower in the current quarter compared to both the prior quarter and the year-ago quarter.