Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow decreased from the prior quarter and from the same quarter a year earlier, with the margin narrowing. Revenue grew, but operating cash flow contracted, leading to a lower conversion rate.
- Revenue increased compared with both the prior quarter and the year-ago quarter, yet operating cash flow was lower in both comparisons. Capital expenditure was slightly lower than the prior quarter but higher than a year earlier. As a result, free cash flow and its margin declined sequentially and year over year.
- Compared with the immediately preceding quarter, revenue was higher while operating cash flow, free cash flow, and margin were lower. Versus the same quarter one year earlier, revenue was higher but operating cash flow, free cash flow, and margin were all lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$115.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$313.0M
Cash generated by operations before capital spending.
CapEx
$198.0M
Capital spending and related asset purchases.
FCF margin
1.5%
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 |
|---|---|---|---|---|---|
| 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% |
| 2022-07-31 | $7.7B | $334.0M | $203.0M | $131.0M | 1.7% |
| 2022-10-31 | $7.8B | $313.0M | $198.0M | $115.0M | 1.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 54.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.5B | 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 contraction
Despite higher revenue, operating cash flow weakened both sequentially and year over year, which directly reduced free cash flow.
Free cash flow margin narrowed as operating cash flow did not keep pace with revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased compared with both the prior quarter and the year-ago quarter, yet operating cash flow was lower in both comparisons. Capital expenditure was slightly lower than the prior quarter but higher than a year earlier. As a result, free cash flow and its margin declined sequentially and year over year.
Compared with the immediately preceding quarter, revenue was higher while operating cash flow, free cash flow, and margin were lower. Versus the same quarter one year earlier, revenue was higher but operating cash flow, free cash flow, and margin were all lower.
Monitor the trajectory of operating cash flow conversion relative to revenue growth.