Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved compared to both the prior quarter and the same quarter last year, driven by higher revenue and a lower capital expenditure. Operating cash flow was stable relative to the prior quarter but higher than a year ago.
- Revenue increased from both the prior quarter and the year-ago quarter. Operating cash flow was stable compared to the prior quarter and higher than a year ago. Capital expenditure decreased from the prior quarter but increased from a year ago. Free cash flow and free cash flow margin improved sequentially and year-over-year.
- Compared to the prior quarter, free cash flow was higher and the margin improved, as revenue increased and capital expenditure decreased. Compared to the same quarter last year, free cash flow was higher and the margin improved, with revenue higher and operating cash flow higher, partially offset by higher capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$391.5M
Trailing twelve-month free cash flow.
Quarter free cash flow
$180.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$281.4M
Cash generated by operations before capital spending.
CapEx
$100.6M
Capital spending and related asset purchases.
FCF margin
4.4%
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 |
|---|---|---|---|---|---|
| 2023-10-31 | $4.1B | $252.6M | $107.1M | $145.6M | 3.6% |
| 2024-01-31 | $3.3B | $122.8M | $149.8M | -$27.0M | -0.8% |
| 2024-04-30 | $3.6B | $288.4M | $196.3M | $92.1M | 2.6% |
| 2024-07-31 | $4.1B | $281.4M | $100.6M | $180.8M | 4.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 100.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.5% | 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.
Revenue Growth and Lower Capital Expenditure
Revenue increased from both the prior quarter and the year-ago quarter, while capital expenditure decreased from the prior quarter. This combination supported higher free cash flow and an improved margin.
The sequential improvement in free cash flow was primarily driven by higher revenue and lower capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased from both the prior quarter and the year-ago quarter. Operating cash flow was stable compared to the prior quarter and higher than a year ago. Capital expenditure decreased from the prior quarter but increased from a year ago. Free cash flow and free cash flow margin improved sequentially and year-over-year.
Compared to the prior quarter, free cash flow was higher and the margin improved, as revenue increased and capital expenditure decreased. Compared to the same quarter last year, free cash flow was higher and the margin improved, with revenue higher and operating cash flow higher, partially offset by higher capital expenditure.
Monitor the current ratio, which decreased from the prior quarter and from a year ago, partly due to increased current maturities of long-term debt.