Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sharply versus both the prior quarter and the same quarter last year, driven by a large increase in operating cash flow. Revenue was stable, while the free cash flow margin expanded significantly.
- Revenue was unchanged from both comparison periods, but operating cash flow rose substantially, lifting free cash flow and the free cash flow margin. Capital expenditure was higher than the prior quarter but moderately above the year-ago level.
- Compared with the immediately preceding quarter, operating cash flow and free cash flow were both higher, and the free cash flow margin improved. Versus the same quarter one year earlier, all cash flow metrics were higher and the margin strengthened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$377.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$196.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$265.0M
Cash generated by operations before capital spending.
CapEx
$69.0M
Capital spending and related asset purchases.
FCF margin
18.3%
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 |
|---|---|---|---|---|---|
| 2023-04-30 | $1.0B | $230.0M | $67.0M | $163.0M | 15.6% |
| 2023-07-31 | $1.0B | $38.0M | $49.0M | -$11.0M | -1.1% |
| 2023-10-31 | $1.1B | $59.0M | $30.0M | $29.0M | 2.6% |
| 2024-01-31 | $1.1B | $265.0M | $69.0M | $196.0M | 18.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 68.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.1B | 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 Surge
Operating cash flow was substantially higher than both the prior quarter and the year-ago quarter, while revenue remained flat. This was the strongest observable driver of the improvement in free cash flow.
The increase in operating cash flow directly lifted free cash flow and the free cash flow margin to a higher level.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was unchanged from both comparison periods, but operating cash flow rose substantially, lifting free cash flow and the free cash flow margin. Capital expenditure was higher than the prior quarter but moderately above the year-ago level.
Compared with the immediately preceding quarter, operating cash flow and free cash flow were both higher, and the free cash flow margin improved. Versus the same quarter one year earlier, all cash flow metrics were higher and the margin strengthened.
Monitor whether operating cash flow can sustain its elevated level relative to stable revenue in future quarters.