Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased sequentially and year-over-year, while operating cash flow grew at a faster pace, leading to an improvement in free cash flow margin. The company's filing indicates that operating cash flows have historically been a significant source of liquidity and are expected to remain sufficient.
- Operating cash flow rose more than revenue, and capital expenditure declined from the prior quarter, resulting in a higher free cash flow margin. The combination of higher operating cash flow and lower capex relative to the previous quarter drove the conversion improvement.
- Compared to the immediately preceding quarter, free cash flow and margin both increased. Relative to the same quarter one year earlier, free cash flow was higher and margin improved, despite a higher capital expenditure.
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
$298.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$392.7M
Cash generated by operations before capital spending.
CapEx
$93.8M
Capital spending and related asset purchases.
FCF margin
12.6%
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 |
|---|---|---|---|---|---|
| 2023-02-28 | $2.2B | $425.0M | $77.7M | $347.3M | 15.9% |
| 2023-05-31 | $2.3B | $542.0M | $107.0M | $435.0M | 19.0% |
| 2023-08-31 | $2.3B | $336.9M | $106.7M | $230.2M | 9.8% |
| 2023-11-30 | $2.4B | $392.7M | $93.8M | $298.9M | 12.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 79.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.9% | 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.
Operating Cash Flow Growth
Operating cash flow increased from both the prior quarter and the year-ago period, outpacing revenue growth. This was the primary factor behind the higher free cash flow and margin.
The stronger operating cash flow directly supported the improvement in free cash flow generation.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow rose more than revenue, and capital expenditure declined from the prior quarter, resulting in a higher free cash flow margin. The combination of higher operating cash flow and lower capex relative to the previous quarter drove the conversion improvement.
Compared to the immediately preceding quarter, free cash flow and margin both increased. Relative to the same quarter one year earlier, free cash flow was higher and margin improved, despite a higher capital expenditure.
Monitor the relationship between capital expenditure and operating cash flow to assess whether the improved conversion rate persists.