Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was unchanged sequentially but improved from a year earlier. Free cash flow and free cash flow margin strengthened both sequentially and year-over-year, driven by higher operating cash flow relative to capital expenditure.
- Operating cash flow significantly exceeded capital expenditure, yielding a free cash flow margin that improved from both the prior quarter and the same quarter last year. The conversion of revenue into free cash flow was stronger than in the comparable periods, as capital expenditure absorbed a smaller share of operating cash flow.
- Compared to the prior quarter, revenue was stable while operating cash flow increased, capital expenditure decreased, and free cash flow rose. Versus the same quarter last year, revenue, operating cash flow, and free cash flow all increased, with free cash flow margin improving from both the preceding quarter and the year-ago quarter.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.4B
Cash generated by operations before capital spending.
CapEx
$176.2M
Capital spending and related asset purchases.
FCF margin
37.9%
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 | $3.0B | $1.2B | $118.8M | $1.1B | 37.1% |
| 2022-07-30 | $3.1B | $1.2B | $164.9M | $1.1B | 34.8% |
| 2022-10-29 | $3.2B | $1.1B | $304.5M | $844.8M | 26.0% |
| 2023-01-28 | $3.2B | $1.4B | $176.2M | $1.2B | 37.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 127.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.9B | 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 Improvement
Operating cash flow rose from both the prior quarter and the year-ago quarter, and the sequential increase was especially notable given flat revenue. This improvement was the primary observable driver behind the higher free cash flow and margin.
Stronger operating cash flow directly supported a higher free cash flow and an expanded 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 significantly exceeded capital expenditure, yielding a free cash flow margin that improved from both the prior quarter and the same quarter last year. The conversion of revenue into free cash flow was stronger than in the comparable periods, as capital expenditure absorbed a smaller share of operating cash flow.
Compared to the prior quarter, revenue was stable while operating cash flow increased, capital expenditure decreased, and free cash flow rose. Versus the same quarter last year, revenue, operating cash flow, and free cash flow all increased, with free cash flow margin improving from both the preceding quarter and the year-ago quarter.
Monitor changes in capital expenditure, which declined sharply sequentially and could affect future free cash flow generation if it reverts to prior levels.