Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion improved significantly as operating cash flow rose while capital expenditure declined, leading to higher free cash flow and margin. Revenue remained stable compared to both the prior quarter and the same quarter one year earlier.
- With revenue unchanged, a higher operating cash flow and a lower capital expenditure resulted in a substantially higher free cash flow and an improved free cash flow margin.
- Compared to the prior quarter, operating cash flow, free cash flow, and free cash flow margin all improved, while capital expenditure was slightly lower. Versus the same quarter one year earlier, operating cash flow and free cash flow were higher, capital expenditure was lower, and free cash flow margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$854.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.5B
Cash generated by operations before capital spending.
CapEx
$671.0M
Capital spending and related asset purchases.
FCF margin
12.2%
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 |
|---|---|---|---|---|---|
| 2022-10-31 | $7.9B | $3.0B | $1.0B | $2.0B | 25.9% |
| 2023-01-31 | $7.8B | -$829.0M | $794.0M | -$1.6B | -20.8% |
| 2023-04-30 | $7.0B | $889.0M | $688.0M | $201.0M | 2.9% |
| 2023-07-31 | $7.0B | $1.5B | $671.0M | $854.0M | 12.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 184.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 9.6% | 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 Growth
Operating cash flow increased compared to both the prior quarter and the same quarter one year earlier, while capital expenditure decreased relative to both periods.
This combination drove a substantial improvement in free cash flow and free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
With revenue unchanged, a higher operating cash flow and a lower capital expenditure resulted in a substantially higher free cash flow and an improved free cash flow margin.
Compared to the prior quarter, operating cash flow, free cash flow, and free cash flow margin all improved, while capital expenditure was slightly lower. Versus the same quarter one year earlier, operating cash flow and free cash flow were higher, capital expenditure was lower, and free cash flow margin improved.
Monitor whether operating cash flow can sustain its elevated level given that revenue remained flat across all three periods.