Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The company generated positive free cash flow during the current quarter, reversing the negative free cash flow of the prior quarter. Compared to the same quarter last year, free cash flow and margin were lower as operating cash flow decreased.
- Revenue remained relatively stable, while operating cash flow turned positive after being negative in the prior quarter. Capital expenditure decreased compared to both the prior quarter and the same quarter last year, contributing to a positive but lower free cash flow margin relative to a year ago.
- Compared to the immediately preceding quarter, operating cash flow, free cash flow, and margin all improved from negative to positive. Compared to the same quarter one year earlier, revenue, operating cash flow, free cash flow, and margin were all lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$321.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$512.0M
Cash generated by operations before capital spending.
CapEx
$191.0M
Capital spending and related asset purchases.
FCF margin
3.3%
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 |
|---|---|---|---|---|---|
| 2022-10-29 | $10.6B | $601.0M | $255.0M | $346.0M | 3.3% |
| 2023-01-28 | $14.7B | $1.9B | $234.0M | $1.7B | 11.5% |
| 2023-04-29 | $9.5B | -$331.0M | $204.0M | -$535.0M | -5.7% |
| 2023-07-29 | $9.6B | $512.0M | $191.0M | $321.0M | 3.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 117.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$67.0M | 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 Reversal
Operating cash flow turned from negative in the prior quarter to positive in the current quarter, while capital expenditure decreased modestly. This swing was the strongest observable driver behind the improvement in free cash flow.
The reversal of operating cash flow was the primary factor enabling the company to generate positive free cash flow this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue remained relatively stable, while operating cash flow turned positive after being negative in the prior quarter. Capital expenditure decreased compared to both the prior quarter and the same quarter last year, contributing to a positive but lower free cash flow margin relative to a year ago.
Compared to the immediately preceding quarter, operating cash flow, free cash flow, and margin all improved from negative to positive. Compared to the same quarter one year earlier, revenue, operating cash flow, free cash flow, and margin were all lower.
Monitor operating cash flow trends, as its shift from negative to positive was the primary driver of the free cash flow recovery.