Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion improved significantly quarter over quarter and year over year. Free cash flow margin increased from a single-digit level to a higher level.
- Revenue was higher, operating cash flow was substantially higher, and capital expenditure was lower, resulting in much higher free cash flow and an improved margin.
- Compared to the prior quarter, all metrics improved. Compared to the same quarter one year earlier, revenue was higher and free cash flow turned from minimal to substantial.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$8.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.4B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.5B
Cash generated by operations before capital spending.
CapEx
$166.0M
Capital spending and related asset purchases.
FCF margin
15.7%
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 |
|---|---|---|---|---|---|
| 2023-01-31 | $8.4B | $2.8B | $218.0M | $2.6B | 30.7% |
| 2023-04-30 | $8.2B | $4.5B | $243.0M | $4.2B | 51.5% |
| 2023-07-31 | $8.6B | $808.0M | $180.0M | $628.0M | 7.3% |
| 2023-10-31 | $8.7B | $1.5B | $166.0M | $1.4B | 15.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 111.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.0B | 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 Growth
Operating cash flow increased significantly compared to both the prior quarter and the year-ago quarter, while capital expenditure declined.
This higher cash generation directly improved the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher, operating cash flow was substantially higher, and capital expenditure was lower, resulting in much higher free cash flow and an improved margin.
Compared to the prior quarter, all metrics improved. Compared to the same quarter one year earlier, revenue was higher and free cash flow turned from minimal to substantial.
Monitor the sustainability of operating cash flow, given the company's reliance on cash from operations and the risks and uncertainties noted in the filing.