Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the current quarter, free cash flow margin improved sequentially but declined compared to the same quarter last year. Revenue was higher than both prior periods, while operating cash flow was higher than the previous quarter but lower than a year ago.
- Revenue increased, and operating cash flow rose sequentially, leading to higher free cash flow and an improved free cash flow margin. However, capital expenditure also increased, partially offsetting the cash generation.
- Compared to the immediately preceding quarter, free cash flow and margin were higher. Compared to the same quarter one year earlier, free cash flow and margin were lower, despite higher revenue.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$435.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$542.0M
Cash generated by operations before capital spending.
CapEx
$107.0M
Capital spending and related asset purchases.
FCF margin
19.0%
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 |
|---|---|---|---|---|---|
| 2022-08-31 | $2.2B | $298.2M | $70.0M | $228.1M | 10.5% |
| 2022-11-30 | $2.2B | $321.0M | $76.4M | $244.6M | 11.2% |
| 2023-02-28 | $2.2B | $425.0M | $77.7M | $347.3M | 15.9% |
| 2023-05-31 | $2.3B | $542.0M | $107.0M | $435.0M | 19.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 125.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.4B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Sequential free cash flow margin recovery
Free cash flow margin improved from the prior quarter, as operating cash flow increased while capital expenditure also rose but at a slower rate relative to revenue.
This indicates stronger cash conversion efficiency in the current quarter compared to the previous quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased, and operating cash flow rose sequentially, leading to higher free cash flow and an improved free cash flow margin. However, capital expenditure also increased, partially offsetting the cash generation.
Compared to the immediately preceding quarter, free cash flow and margin were higher. Compared to the same quarter one year earlier, free cash flow and margin were lower, despite higher revenue.
Monitor the trend in capital expenditure, as it increased both sequentially and year-over-year.