Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable versus the prior quarter and higher than a year ago. Free cash flow improved sharply from the prior quarter but was lower than the same quarter last year.
- Operating cash flow was substantially higher than the prior quarter, leading to a free cash flow margin that improved from the prior quarter but remained below the year-ago level. Capital expenditure was higher than both comparison periods.
- Compared to the prior quarter, revenue was stable while operating cash flow and free cash flow were significantly higher. Compared to the same quarter one year earlier, revenue was higher but operating cash flow, free cash flow, and free cash flow margin were all lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.3B
Cash generated by operations before capital spending.
CapEx
$287.0M
Capital spending and related asset purchases.
FCF margin
29.4%
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 |
|---|---|---|---|---|---|
| 2022-05-01 | $6.2B | $415.0M | $210.0M | $205.0M | 3.3% |
| 2022-07-31 | $6.5B | $1.5B | $210.0M | $1.3B | 19.3% |
| 2022-10-30 | $6.7B | $857.0M | $223.0M | $634.0M | 9.4% |
| 2023-01-29 | $6.7B | $2.3B | $287.0M | $2.0B | 29.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 115.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.3% | 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.
Operating Cash Flow Recovery
Operating cash flow increased substantially from the prior quarter, driving a similar improvement in free cash flow. This was the strongest observable driver of the quarter's cash conversion performance.
The higher operating cash flow directly lifted free cash flow and the free cash flow margin compared to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was substantially higher than the prior quarter, leading to a free cash flow margin that improved from the prior quarter but remained below the year-ago level. Capital expenditure was higher than both comparison periods.
Compared to the prior quarter, revenue was stable while operating cash flow and free cash flow were significantly higher. Compared to the same quarter one year earlier, revenue was higher but operating cash flow, free cash flow, and free cash flow margin were all lower.
Monitor the trajectory of operating cash flow given its sharp sequential improvement but year-over-year decline.