Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved significantly compared to both the prior quarter and the same quarter last year, driven by a substantial increase in operating cash flow. Revenue remained stable across all periods, while capital expenditure was slightly lower than a year ago.
- Revenue was unchanged from the prior quarter and the year-ago quarter. Operating cash flow rose sharply compared to both periods, leading to a higher free cash flow and an improved free cash flow margin.
- Compared to the prior quarter, free cash flow and free cash flow margin were higher, driven by stronger operating cash flow despite a moderate increase in capital expenditure. Versus the same quarter last year, free cash flow and margin also improved, with operating cash flow higher and capital expenditure slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$481.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$562.0M
Cash generated by operations before capital spending.
CapEx
$81.0M
Capital spending and related asset purchases.
FCF margin
28.8%
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 |
|---|---|---|---|---|---|
| 2022-10-31 | $1.8B | $448.0M | $70.0M | $378.0M | 20.4% |
| 2023-01-31 | $1.8B | $296.0M | $76.0M | $220.0M | 12.5% |
| 2023-04-30 | $1.7B | $398.0M | $57.0M | $341.0M | 19.9% |
| 2023-07-31 | $1.7B | $562.0M | $81.0M | $481.0M | 28.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 433.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.4B | 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 Strength
Operating cash flow was higher than both the prior quarter and the same quarter last year, providing the main lift to free cash flow. This occurred while revenue remained stable across all periods.
The stronger operating cash flow directly improved free cash flow and the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was unchanged from the prior quarter and the year-ago quarter. Operating cash flow rose sharply compared to both periods, leading to a higher free cash flow and an improved free cash flow margin.
Compared to the prior quarter, free cash flow and free cash flow margin were higher, driven by stronger operating cash flow despite a moderate increase in capital expenditure. Versus the same quarter last year, free cash flow and margin also improved, with operating cash flow higher and capital expenditure slightly lower.
Monitor the trend in operating cash flow, as its increase was the primary factor behind the free cash flow improvement.