Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In this quarter, free cash flow was minimal despite moderate revenue growth, as operating cash flow declined and capital expenditure remained elevated relative to prior periods. The free cash flow margin contracted sharply compared to both the previous quarter and the same quarter last year.
- Revenue increased slightly from the prior quarter and more notably from a year ago, but operating cash flow decreased significantly, leading to a low free cash flow after capital expenditure. The free cash flow margin was very thin.
- Compared to the immediately preceding quarter, free cash flow and margin weakened, while revenue was stable. Relative to the same quarter one year earlier, free cash flow and margin declined substantially, with operating cash flow lower and capital expenditure higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$136.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$4.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$122.7M
Cash generated by operations before capital spending.
CapEx
$118.1M
Capital spending and related asset purchases.
FCF margin
0.5%
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 | $877.4M | $124.2M | $73.6M | $50.6M | 5.8% |
| 2023-07-31 | $930.2M | $142.5M | $90.9M | $51.6M | 5.5% |
| 2023-10-31 | $927.1M | $174.2M | $145.0M | $29.2M | 3.1% |
| 2024-01-31 | $931.6M | $122.7M | $118.1M | $4.6M | 0.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 5.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 12.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.6B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Cash Conversion Pressure
Operating cash flow fell compared to both the prior quarter and the year-ago period, while capital expenditure remained significant, compressing free cash flow.
The weakened cash conversion limits free cash flow generation and reduces financial flexibility.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased slightly from the prior quarter and more notably from a year ago, but operating cash flow decreased significantly, leading to a low free cash flow after capital expenditure. The free cash flow margin was very thin.
Compared to the immediately preceding quarter, free cash flow and margin weakened, while revenue was stable. Relative to the same quarter one year earlier, free cash flow and margin declined substantially, with operating cash flow lower and capital expenditure higher.
Monitor the magnitude of capital expenditure relative to operating cash flow, as it has a direct impact on free cash flow generation.