Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and free cash flow were lower than both the prior quarter and the same quarter last year. Operating cash flow improved sequentially but declined year-over-year.
- Operating cash flow as a proportion of revenue was higher than the prior quarter but lower than the year-ago quarter. Capital expenditure was higher than the year-ago quarter but lower than the prior quarter, resulting in free cash flow margin that improved sequentially but weakened year-over-year.
- Compared to the prior quarter, revenue was higher, operating cash flow was higher, capital expenditure was lower, and free cash flow and margin were higher. Compared to the same quarter last year, revenue was lower, operating cash flow was lower, capital expenditure was higher, and free cash flow and margin were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$894.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.7B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.9B
Cash generated by operations before capital spending.
CapEx
$234.0M
Capital spending and related asset purchases.
FCF margin
11.5%
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 | $10.6B | -$1.4B | $215.0M | -$1.6B | -15.0% |
| 2022-07-30 | $10.3B | $675.0M | $226.0M | $449.0M | 4.3% |
| 2022-10-29 | $10.6B | $601.0M | $255.0M | $346.0M | 3.3% |
| 2023-01-28 | $14.7B | $1.9B | $234.0M | $1.7B | 11.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 343.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | $698.0M | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Sequential cash flow improvement
Operating cash flow increased substantially from the prior quarter, driving a higher free cash flow margin despite a modest reduction in capital expenditure.
This sequential improvement in cash generation was the strongest observable driver of the quarter's free cash flow performance.
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 but lower than the year-ago quarter. Capital expenditure was higher than the year-ago quarter but lower than the prior quarter, resulting in free cash flow margin that improved sequentially but weakened year-over-year.
Compared to the prior quarter, revenue was higher, operating cash flow was higher, capital expenditure was lower, and free cash flow and margin were higher. Compared to the same quarter last year, revenue was lower, operating cash flow was lower, capital expenditure was higher, and free cash flow and margin were lower.
Monitor the trend in capital expenditure relative to operating cash flow, as it was higher year-over-year while operating cash flow declined.