Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was slightly higher than the prior quarter but lower than the same quarter last year. Free cash flow and free cash flow margin improved markedly compared to both periods, driven by a substantial increase in operating cash flow.
- Operating cash flow rose significantly, while capital expenditure increased modestly from the prior quarter and decreased from the year-ago quarter. The resulting free cash flow and free cash flow margin both improved, reflecting stronger cash conversion from revenue.
- Compared to the immediately preceding quarter, free cash flow and margin were higher. Versus the same quarter one year earlier, free cash flow and margin were also higher, despite lower revenue.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$839.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$976.0M
Cash generated by operations before capital spending.
CapEx
$137.0M
Capital spending and related asset purchases.
FCF margin
6.4%
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 | $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% |
| 2023-07-31 | $13.2B | $976.0M | $137.0M | $839.0M | 6.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 109.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$8.0B | 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 year-ago quarter, providing the primary lift to free cash flow.
This improvement was the strongest observable driver of the higher free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow rose significantly, while capital expenditure increased modestly from the prior quarter and decreased from the year-ago quarter. The resulting free cash flow and free cash flow margin both improved, reflecting stronger cash conversion from revenue.
Compared to the immediately preceding quarter, free cash flow and margin were higher. Versus the same quarter one year earlier, free cash flow and margin were also higher, despite lower revenue.
The trend in capital expenditure relative to operating cash flow is a concrete item to monitor, as it directly affects free cash flow.