Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to the prior quarter and higher than the same quarter a year earlier. Free cash flow and free cash flow margin were lower sequentially but improved year over year, driven by changes in operating cash flow.
- The conversion of revenue into operating cash flow weakened from the prior quarter, resulting in a lower free cash flow margin after capital expenditure. Compared to the same quarter a year earlier, the conversion improved as operating cash flow and free cash flow both increased.
- Revenue was stable versus the prior quarter and higher than the year-ago period. Operating cash flow, free cash flow, and free cash flow margin were lower than the prior quarter but higher than the same quarter a year earlier. Capital expenditure was slightly higher than the prior quarter and similar to the year-ago period.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$220.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$296.0M
Cash generated by operations before capital spending.
CapEx
$76.0M
Capital spending and related asset purchases.
FCF margin
12.5%
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 |
|---|---|---|---|---|---|
| 2022-04-30 | $1.6B | $283.0M | $64.0M | $219.0M | 13.6% |
| 2022-07-31 | $1.7B | $326.0M | $82.0M | $244.0M | 14.2% |
| 2022-10-31 | $1.8B | $448.0M | $70.0M | $378.0M | 20.4% |
| 2023-01-31 | $1.8B | $296.0M | $76.0M | $220.0M | 12.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 62.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.5B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Operating cash flow decline
Operating cash flow decreased from the prior quarter despite stable revenue, reducing free cash flow. The filing context indicates that the company believes its cash generation will satisfy liquidity requirements, making the sequential weakening a key item to observe.
The lower operating cash flow caused free cash flow and free cash flow margin to decline sequentially, even though capital expenditure remained relatively stable.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The conversion of revenue into operating cash flow weakened from the prior quarter, resulting in a lower free cash flow margin after capital expenditure. Compared to the same quarter a year earlier, the conversion improved as operating cash flow and free cash flow both increased.
Revenue was stable versus the prior quarter and higher than the year-ago period. Operating cash flow, free cash flow, and free cash flow margin were lower than the prior quarter but higher than the same quarter a year earlier. Capital expenditure was slightly higher than the prior quarter and similar to the year-ago period.
Monitor the trajectory of operating cash flow, as its sequential decline was the primary factor behind the lower free cash flow, while the company's liquidity narrative notes reliance on cash generation for working capital and capital expenditure needs.