Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the current quarter, revenue was negative while operating cash flow remained positive, leading to positive free cash flow. Sequentially, free cash flow turned from negative to positive, and year over year, free cash flow increased.
- Despite negative revenue, the company generated positive operating cash flow, which after capital expenditures resulted in positive free cash flow.
- Compared to the preceding quarter, operating cash flow was higher and capital expenditure was lower, turning free cash flow positive. Compared to the same quarter one year earlier, operating cash flow was higher, capital expenditure was similar, and free cash flow improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$412.2M
Trailing twelve-month free cash flow.
Quarter free cash flow
$598.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$880.7M
Cash generated by operations before capital spending.
CapEx
$281.8M
Capital spending and related asset purchases.
FCF margin
-11.5%
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 |
|---|---|---|---|---|---|
| 2022-04-30 | $6.9B | $538.5M | $253.4M | $285.1M | 4.1% |
| 2022-07-30 | $6.8B | -$17.9M | $276.2M | -$294.1M | -4.3% |
| 2022-10-29 | $6.9B | $213.5M | $391.2M | -$177.7M | -2.6% |
| 2023-01-28 | -$5.2B | $880.7M | $281.8M | $598.9M | -11.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 132.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | -5.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.8B | 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 was higher than both the prior quarter and the same quarter last year, providing the primary support for free cash flow.
This improvement enabled free cash flow to turn positive despite negative revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Despite negative revenue, the company generated positive operating cash flow, which after capital expenditures resulted in positive free cash flow.
Compared to the preceding quarter, operating cash flow was higher and capital expenditure was lower, turning free cash flow positive. Compared to the same quarter one year earlier, operating cash flow was higher, capital expenditure was similar, and free cash flow improved.
Monitor the sustainability of operating cash flow given the negative revenue in this quarter.