Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue rose compared to both the prior quarter and the same quarter a year earlier. Operating cash flow improved markedly, turning free cash flow positive and matching the year-ago margin.
- Operating cash flow increased while capital expenditure also rose, leading to positive free cash flow. The company’s filing notes its access to credit facilities and no short-term borrowings, supporting its liquidity position.
- Compared to the prior quarter, revenue, operating cash flow, free cash flow, and margin all improved. Relative to the same quarter a year earlier, free cash flow margin was stable, while free cash flow was slightly higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$93.5M
Trailing twelve-month free cash flow.
Quarter free cash flow
$130.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$535.6M
Cash generated by operations before capital spending.
CapEx
$404.8M
Capital spending and related asset purchases.
FCF margin
1.3%
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 |
|---|---|---|---|---|---|
| 2022-10-28 | $9.5B | $300.2M | $419.4M | -$119.3M | -1.3% |
| 2023-02-03 | $10.2B | $736.4M | $482.4M | $254.0M | 2.5% |
| 2023-05-05 | $9.3B | $191.1M | $363.1M | -$172.0M | -1.8% |
| 2023-08-04 | $9.8B | $535.6M | $404.8M | $130.8M | 1.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 27.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | 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 improvement
Operating cash flow increased compared to both the prior quarter and the same quarter a year earlier, driven by higher revenue and a wider conversion of revenue into cash.
This improvement enabled the company to generate positive free cash flow after a negative prior quarter, strengthening its ability to fund capital spending and other obligations.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow increased while capital expenditure also rose, leading to positive free cash flow. The company’s filing notes its access to credit facilities and no short-term borrowings, supporting its liquidity position.
Compared to the prior quarter, revenue, operating cash flow, free cash flow, and margin all improved. Relative to the same quarter a year earlier, free cash flow margin was stable, while free cash flow was slightly higher.
Monitor the trend in capital expenditure, which was higher in the current quarter relative to both the prior quarter and the year-ago quarter.