Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue declined compared to both the prior quarter and the same quarter last year. However, operating cash flow improved significantly, leading to positive free cash flow and a higher free cash flow margin.
- Revenue was lower, but operating cash flow turned positive and capital expenditure decreased. As a result, free cash flow became positive and the free cash flow margin improved from negative to positive.
- Compared to the prior quarter, operating cash flow and free cash flow improved from negative to positive, while revenue was lower. Compared to the same quarter last year, operating cash flow and free cash flow were higher, despite lower revenue.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$506.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$636.0M
Cash generated by operations before capital spending.
CapEx
$130.0M
Capital spending and related asset purchases.
FCF margin
3.9%
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 |
|---|---|---|---|---|---|
| 2022-07-31 | $14.6B | $394.0M | $196.0M | $198.0M | 1.4% |
| 2022-10-31 | $14.8B | $1.9B | $118.0M | $1.8B | 12.1% |
| 2023-01-31 | $13.8B | -$16.0M | $192.0M | -$208.0M | -1.5% |
| 2023-04-30 | $12.9B | $636.0M | $130.0M | $506.0M | 3.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 48.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$8.7B | 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 recovery
Operating cash flow increased from negative to positive and exceeded the level of the same quarter last year, even as revenue declined.
This drove free cash flow to turn positive and improved the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower, but operating cash flow turned positive and capital expenditure decreased. As a result, free cash flow became positive and the free cash flow margin improved from negative to positive.
Compared to the prior quarter, operating cash flow and free cash flow improved from negative to positive, while revenue was lower. Compared to the same quarter last year, operating cash flow and free cash flow were higher, despite lower revenue.
Monitor the sustainability of operating cash flow given the decline in revenue.