Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sequentially but weakened compared to the same quarter last year. Operating cash flow rose from the prior quarter, while capital expenditure increased from both comparison periods.
- Revenue was stable versus the prior quarter, while operating cash flow increased, leading to a higher free cash flow margin. Compared to the year-ago quarter, revenue was lower and operating cash flow declined, resulting in a lower free cash flow margin.
- Free cash flow and free cash flow margin were higher than the immediately preceding quarter but lower than the same quarter one year earlier. Operating cash flow followed a similar pattern, while capital expenditure was higher in both comparisons.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$405.4M
Trailing twelve-month free cash flow.
Quarter free cash flow
$70.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$245.4M
Cash generated by operations before capital spending.
CapEx
$175.3M
Capital spending and related asset purchases.
FCF margin
2.1%
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 |
|---|---|---|---|---|---|
| 2022-07-31 | $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% |
| 2023-04-30 | $3.3B | $245.4M | $175.3M | $70.1M | 2.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 125.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.2B | 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 increased from the prior quarter, supporting a higher free cash flow despite higher capital expenditure. The filing notes that cash provided by operations is the primary source of liquidity and that inventory turnover aids operations without large working capital.
The sequential rise in operating cash flow was the strongest observable driver of the improvement in free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable versus the prior quarter, while operating cash flow increased, leading to a higher free cash flow margin. Compared to the year-ago quarter, revenue was lower and operating cash flow declined, resulting in a lower free cash flow margin.
Free cash flow and free cash flow margin were higher than the immediately preceding quarter but lower than the same quarter one year earlier. Operating cash flow followed a similar pattern, while capital expenditure was higher in both comparisons.
Monitor the trend in capital expenditure, as it increased from both the prior quarter and the year-ago quarter.