Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned negative in the current quarter, a weakening from the prior quarter's positive result, but improved compared to the same quarter a year earlier. Operating cash flow decreased sharply from the prior quarter, while capital expenditure increased, driving the negative free cash flow.
- Revenue was lower than both the prior quarter and the same quarter a year earlier. Operating cash flow, though positive, was significantly lower than the prior quarter, and capital expenditure was higher, resulting in a negative free cash flow margin.
- Compared to the prior quarter, free cash flow weakened from a positive to a negative figure, driven by a much lower operating cash flow and higher capital expenditure. Compared to the same quarter a year earlier, free cash flow improved as operating cash flow turned positive and capital expenditure was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$37.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$121.0M
Cash generated by operations before capital spending.
CapEx
$158.0M
Capital spending and related asset purchases.
FCF margin
-0.3%
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 |
|---|---|---|---|---|---|
| 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% |
| 2023-10-31 | $13.8B | $2.0B | $134.0M | $1.8B | 13.3% |
| 2024-01-31 | $13.2B | $121.0M | $158.0M | -$37.0M | -0.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -5.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$7.4B | 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 decline
Operating cash flow in the current quarter was substantially lower than the prior quarter, while capital expenditure increased. This combination was the primary observable factor behind the negative free cash flow.
The negative free cash flow margin indicates that cash generation from operations was insufficient to cover capital spending in the current quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than both the prior quarter and the same quarter a year earlier. Operating cash flow, though positive, was significantly lower than the prior quarter, and capital expenditure was higher, resulting in a negative free cash flow margin.
Compared to the prior quarter, free cash flow weakened from a positive to a negative figure, driven by a much lower operating cash flow and higher capital expenditure. Compared to the same quarter a year earlier, free cash flow improved as operating cash flow turned positive and capital expenditure was lower.
Monitor the trend in operating cash flow, which showed significant volatility between the current quarter and the prior quarter.