Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower than the prior quarter but higher than the same quarter last year. Free cash flow turned positive compared to a negative figure one year earlier, though it weakened sharply from the preceding quarter.
- Operating cash flow was lower than the prior quarter but higher than the year-ago quarter. Capital expenditure increased from both comparison periods, resulting in free cash flow that was lower than the prior quarter but improved from the negative level a year ago. The free cash flow margin weakened sequentially but improved from the negative margin in the same quarter last year.
- Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and margin all decreased, while capital expenditure increased. Compared to the same quarter one year earlier, revenue, operating cash flow, and free cash flow were higher, and the margin improved from negative to positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$489.2M
Trailing twelve-month free cash flow.
Quarter free cash flow
$26.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$150.5M
Cash generated by operations before capital spending.
CapEx
$124.0M
Capital spending and related asset purchases.
FCF margin
0.8%
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 | $3.5B | $252.2M | $98.3M | $153.9M | 4.5% |
| 2022-07-31 | $4.5B | $276.2M | $82.1M | $194.1M | 4.4% |
| 2022-10-31 | $4.0B | $209.9M | $95.3M | $114.6M | 2.9% |
| 2023-01-31 | $3.3B | $150.5M | $124.0M | $26.5M | 0.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 26.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.3B | 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 Year-over-Year
Operating cash flow was higher than the same quarter last year, contributing to a positive free cash flow compared to a negative figure a year ago. The filing notes that net cash provided by operations increased in the nine-month period, primarily due to an increase in cash and cash equivalents from strong free cash flows.
This year-over-year improvement in operating cash flow was the strongest observable driver of the positive free cash flow for the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than the prior quarter but higher than the year-ago quarter. Capital expenditure increased from both comparison periods, resulting in free cash flow that was lower than the prior quarter but improved from the negative level a year ago. The free cash flow margin weakened sequentially but improved from the negative margin in the same quarter last year.
Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and margin all decreased, while capital expenditure increased. Compared to the same quarter one year earlier, revenue, operating cash flow, and free cash flow were higher, and the margin improved from negative to positive.
Monitor the level of capital expenditure, which increased from both the prior quarter and the year-ago quarter, as it directly reduced free cash flow.