Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved significantly compared with the same quarter last year, driven by stronger operating cash flow. On a sequential basis, both operating cash flow and free cash flow were slightly lower, resulting in a modest decline in margin.
- Revenue remained stable from the prior quarter, while operating cash flow as a share of revenue was higher than a year earlier but slightly lower than the preceding quarter. This resulted in a free cash flow margin that improved year over year but weakened sequentially.
- Compared with the preceding quarter, free cash flow and margin were lower. Compared with the same quarter one year earlier, free cash flow and margin were substantially higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$306.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$366.0M
Cash generated by operations before capital spending.
CapEx
$60.0M
Capital spending and related asset purchases.
FCF margin
22.2%
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 |
|---|---|---|---|---|---|
| 2022-04-30 | $1.4B | $298.0M | $53.0M | $245.0M | 18.1% |
| 2022-07-31 | $1.4B | $224.0M | $32.0M | $192.0M | 14.0% |
| 2022-10-31 | $1.4B | $398.0M | $58.0M | $340.0M | 23.6% |
| 2023-01-31 | $1.4B | $366.0M | $60.0M | $306.0M | 22.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 117.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | 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 year-over-year improvement
Operating cash flow for the current quarter increased compared to the same period last year, as noted in the filing discussion of cash flows. This improvement was the primary factor behind the higher free cash flow year over year.
The stronger operating cash flow significantly boosted free cash flow generation relative to the prior year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue remained stable from the prior quarter, while operating cash flow as a share of revenue was higher than a year earlier but slightly lower than the preceding quarter. This resulted in a free cash flow margin that improved year over year but weakened sequentially.
Compared with the preceding quarter, free cash flow and margin were lower. Compared with the same quarter one year earlier, free cash flow and margin were substantially higher.
Monitor capital expenditure trends as they increased from both the prior quarter and the year-ago quarter.