Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow turned negative, leading to a substantial free cash flow deficit. Revenue was slightly lower than the prior quarter but higher than the same quarter last year.
- Revenue was stable relative to the prior quarter, but operating cash flow shifted from a large inflow to a large outflow, while capital expenditure decreased. The result was a free cash flow margin that turned deeply negative, a significant weakening from both comparison periods.
- Compared to the immediately preceding quarter, free cash flow moved from positive to negative, driven by the swing in operating cash flow. Versus the same quarter one year earlier, free cash flow was more negative despite higher revenue, as operating cash flow worsened and capital expenditure increased.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$548.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$1.6B
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$829.0M
Cash generated by operations before capital spending.
CapEx
$794.0M
Capital spending and related asset purchases.
FCF margin
-20.8%
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 | $6.7B | $379.0M | $725.0M | -$346.0M | -5.2% |
| 2022-07-31 | $7.0B | $1.3B | $773.0M | $481.0M | 6.9% |
| 2022-10-31 | $7.9B | $3.0B | $1.0B | $2.0B | 25.9% |
| 2023-01-31 | $7.8B | -$829.0M | $794.0M | -$1.6B | -20.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -324.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 10.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$10.4B | 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 Swing
Operating cash flow turned from a large positive in the prior quarter to a large negative in the current quarter, a substantial change that drove the free cash flow deficit. Capital expenditure also decreased but not enough to offset the cash outflow.
The negative operating cash flow was the primary factor behind the free cash flow margin decline.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable relative to the prior quarter, but operating cash flow shifted from a large inflow to a large outflow, while capital expenditure decreased. The result was a free cash flow margin that turned deeply negative, a significant weakening from both comparison periods.
Compared to the immediately preceding quarter, free cash flow moved from positive to negative, driven by the swing in operating cash flow. Versus the same quarter one year earlier, free cash flow was more negative despite higher revenue, as operating cash flow worsened and capital expenditure increased.
Monitor whether operating cash flow can return to positive territory in the coming quarters.