Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow declined from the preceding quarter, consistent with the seasonal pattern of the business, but improved compared to the same quarter one year earlier. Free cash flow turned positive from a negative position a year ago, though the margin was minimal.
- Operating cash flow was modest relative to revenue, and after capital expenditure, free cash flow was near zero, resulting in a minimal free cash flow margin. The conversion of revenue into free cash flow was constrained by the level of operating cash flow.
- Compared to the preceding quarter, revenue and operating cash flow were lower, and free cash flow decreased from a positive amount to near zero. Versus the same quarter one year earlier, operating cash flow and free cash flow both improved from negative to positive, while revenue was slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$4.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$156.0M
Cash generated by operations before capital spending.
CapEx
$152.0M
Capital spending and related asset purchases.
FCF margin
0.0%
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 |
|---|---|---|---|---|---|
| 2023-07-29 | $9.6B | $512.0M | $191.0M | $321.0M | 3.3% |
| 2023-10-28 | $9.8B | $109.0M | $217.0M | -$108.0M | -1.1% |
| 2024-02-03 | $14.6B | $1.2B | $183.0M | $997.0M | 6.8% |
| 2024-05-04 | $8.8B | $156.0M | $152.0M | $4.0M | 0.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 1.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | $65.0M | 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 Improvement
Operating cash flow shifted from negative a year ago to positive this quarter, while capital expenditure was lower than both the prior quarter and the year-ago period. This combination enabled free cash flow to turn positive.
The positive free cash flow, even at a minimal margin, provides a base for liquidity management.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was modest relative to revenue, and after capital expenditure, free cash flow was near zero, resulting in a minimal free cash flow margin. The conversion of revenue into free cash flow was constrained by the level of operating cash flow.
Compared to the preceding quarter, revenue and operating cash flow were lower, and free cash flow decreased from a positive amount to near zero. Versus the same quarter one year earlier, operating cash flow and free cash flow both improved from negative to positive, while revenue was slightly lower.
The timing and volume of inventory purchases, which the filing notes as a primary factor in the cash decrease, should be monitored for their impact on liquidity.