Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow decreased from the prior quarter and was slightly lower than the same quarter a year ago. The free cash flow margin weakened sequentially and year-over-year.
- The company converted over a billion dollars in revenue into free cash flow near three hundred million, yielding a margin above twenty percent.
- Sequentially, revenue and operating cash flow were lower while capital expenditure was higher, leading to weaker free cash flow and margin. Year-over-year, revenue was higher but capital expenditure also increased, resulting in slightly lower free cash flow and a slightly weaker margin.
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
$297.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$351.5M
Cash generated by operations before capital spending.
CapEx
$54.0M
Capital spending and related asset purchases.
FCF margin
21.0%
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 |
|---|---|---|---|---|---|
| 2022-04-30 | $1.4B | $194.8M | $36.9M | $157.9M | 10.9% |
| 2022-07-30 | $1.5B | $331.5M | $72.6M | $258.9M | 17.1% |
| 2022-10-29 | $1.5B | $411.0M | $42.7M | $368.3M | 24.0% |
| 2023-01-28 | $1.4B | $351.5M | $54.0M | $297.5M | 21.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -1931.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.6B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Lower operating cash flow and higher capital expenditure
The quarter's free cash flow was driven lower by a decline in operating cash flow compared to the prior quarter and by an increase in capital expenditure compared to both prior quarter and year-ago period.
These factors combined to reduce free cash flow from both comparison periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The company converted over a billion dollars in revenue into free cash flow near three hundred million, yielding a margin above twenty percent.
Sequentially, revenue and operating cash flow were lower while capital expenditure was higher, leading to weaker free cash flow and margin. Year-over-year, revenue was higher but capital expenditure also increased, resulting in slightly lower free cash flow and a slightly weaker margin.
Monitor capital expenditure levels as they have increased sequentially and year-over-year.