Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow improved sharply from the prior quarter and the year-ago quarter, driving a positive free cash flow margin. Capital expenditure remained relatively stable across all periods.
- Revenue increased while operating cash flow grew substantially, resulting in a positive free cash flow margin. The conversion from revenue to free cash flow strengthened compared to both the prior quarter and the same quarter last year.
- Compared to the immediately preceding quarter, revenue was higher and operating cash flow improved significantly, turning free cash flow from negative to positive. Versus the same quarter one year earlier, revenue was higher and operating cash flow strengthened, also reversing a negative free cash flow position.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$969.3M
Trailing twelve-month free cash flow.
Quarter free cash flow
$331.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$476.7M
Cash generated by operations before capital spending.
CapEx
$145.5M
Capital spending and related asset purchases.
FCF margin
15.0%
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 |
|---|---|---|---|---|---|
| 2022-10-30 | $1.9B | $65.8M | $175.6M | -$109.8M | -5.9% |
| 2023-01-29 | $2.8B | $1.0B | $207.0M | $839.3M | 30.3% |
| 2023-04-30 | $2.0B | $45.5M | $136.9M | -$91.4M | -4.6% |
| 2023-07-30 | $2.2B | $476.7M | $145.5M | $331.2M | 15.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 97.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.6% | 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 Surge
Operating cash flow rose substantially from both the prior quarter and the year-ago quarter, while capital expenditure remained broadly stable. This shift was the primary factor behind the transition from negative to positive free cash flow.
The improvement in operating cash flow was the strongest observable driver of the positive free cash flow margin this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased while operating cash flow grew substantially, resulting in a positive free cash flow margin. The conversion from revenue to free cash flow strengthened compared to both the prior quarter and the same quarter last year.
Compared to the immediately preceding quarter, revenue was higher and operating cash flow improved significantly, turning free cash flow from negative to positive. Versus the same quarter one year earlier, revenue was higher and operating cash flow strengthened, also reversing a negative free cash flow position.
Monitor whether operating cash flow can sustain its elevated level relative to revenue in subsequent quarters.