Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow and free cash flow were higher than both the preceding quarter and the same quarter last year, while revenue also increased. The free cash flow margin improved compared to the prior quarter but was lower than the year-ago period.
- Revenue was higher, and operating cash flow converted into free cash flow after capital expenditure. The free cash flow margin was above the prior quarter but below the same quarter one year earlier.
- Operating cash flow, free cash flow, and free cash flow margin improved meaningfully compared to the immediately preceding quarter. versus the same quarter one year ago, operating cash flow and free cash flow were higher, while the free cash flow margin was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$3.5B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.7B
Cash generated by operations before capital spending.
CapEx
$179.0M
Capital spending and related asset purchases.
FCF margin
47.2%
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 |
|---|---|---|---|---|---|
| 2021-07-31 | $6.3B | $386.0M | $213.0M | $173.0M | 2.7% |
| 2021-10-31 | $6.9B | $404.0M | $166.0M | $238.0M | 3.5% |
| 2022-01-31 | $7.3B | $2.0B | $167.0M | $1.8B | 24.8% |
| 2022-04-30 | $7.4B | $3.7B | $179.0M | $3.5B | 47.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 12489.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.7B | 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 strength
Operating cash flow was higher than both the previous quarter and the same quarter one year earlier, driving a higher free cash flow despite capital expenditure also being higher.
The increase 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 higher, and operating cash flow converted into free cash flow after capital expenditure. The free cash flow margin was above the prior quarter but below the same quarter one year earlier.
Operating cash flow, free cash flow, and free cash flow margin improved meaningfully compared to the immediately preceding quarter. versus the same quarter one year ago, operating cash flow and free cash flow were higher, while the free cash flow margin was lower.
Monitor the relationship between revenue growth and operating cash flow conversion in future quarters.