Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was higher than the same quarter a year ago but lower than the immediately preceding quarter. The cash conversion margin weakened sequentially while improving significantly from the prior year.
- Revenue increased compared to both the prior quarter and the year-ago period. Operating cash flow decreased from the previous quarter but rose sharply from a year earlier. Capital expenditure was lower than both comparison periods. The resulting free cash flow and free cash flow margin followed the same pattern as operating cash flow—lower sequentially, higher year over year.
- Revenue was higher sequentially and year over year. Operating cash flow was lower than the prior quarter but higher than the year-ago quarter. Capital expenditure decreased from both periods. Free cash flow and its margin showed a similar mixed pattern: weakened sequentially, improved year over year.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$229.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$284.0M
Cash generated by operations before capital spending.
CapEx
$55.0M
Capital spending and related asset purchases.
FCF margin
7.5%
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 | $5.6B | $3.3B | $61.0M | $3.3B | 57.9% |
| 2022-07-31 | $2.4B | $339.0M | $11.0M | $328.0M | 13.6% |
| 2022-10-31 | $2.6B | $328.0M | $77.0M | $251.0M | 9.7% |
| 2023-01-31 | $3.0B | $284.0M | $55.0M | $229.0M | 7.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 136.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.5B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Year-over-Year Operating Cash Flow Growth
Operating cash flow increased substantially compared to the same quarter last year, while capital expenditure was slightly lower. This combination drove a significant improvement in free cash flow.
The year-over-year increase in operating cash flow was the primary observable factor behind the free cash flow improvement.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased compared to both the prior quarter and the year-ago period. Operating cash flow decreased from the previous quarter but rose sharply from a year earlier. Capital expenditure was lower than both comparison periods. The resulting free cash flow and free cash flow margin followed the same pattern as operating cash flow—lower sequentially, higher year over year.
Revenue was higher sequentially and year over year. Operating cash flow was lower than the prior quarter but higher than the year-ago quarter. Capital expenditure decreased from both periods. Free cash flow and its margin showed a similar mixed pattern: weakened sequentially, improved year over year.
Monitor the sequential decline in operating cash flow to assess whether the year-over-year gains can be sustained.