Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower than both the prior quarter and the same quarter last year. Free cash flow and free cash flow margin weakened compared to both periods, driven by a decline in operating cash flow and higher capital expenditure.
- Operating cash flow as a proportion of revenue was lower than the prior quarter but slightly higher than a year ago. Capital expenditure increased relative to both comparison periods, resulting in a free cash flow margin that was lower than both the prior quarter and the year-ago quarter.
- Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all decreased, while capital expenditure increased. Versus the same quarter one year earlier, revenue was lower, operating cash flow was slightly higher, but free cash flow and free cash flow margin were lower due to a notable increase in capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$108.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$208.4M
Cash generated by operations before capital spending.
CapEx
$99.8M
Capital spending and related asset purchases.
FCF margin
8.2%
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 |
|---|---|---|---|---|---|
| 2022-07-30 | $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% |
| 2023-04-29 | $1.3B | $208.4M | $99.8M | $108.6M | 8.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -64.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.6% | 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.
Capital Expenditure Increase
Capital expenditure was higher than both the prior quarter and the year-ago quarter. This was the strongest observable driver of the decline in free cash flow, as operating cash flow was relatively stable compared to a year ago.
The higher capital expenditure absorbed a larger share of operating cash flow, resulting in a lower free cash flow and free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue was lower than the prior quarter but slightly higher than a year ago. Capital expenditure increased relative to both comparison periods, resulting in a free cash flow margin that was lower than both the prior quarter and the year-ago quarter.
Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all decreased, while capital expenditure increased. Versus the same quarter one year earlier, revenue was lower, operating cash flow was slightly higher, but free cash flow and free cash flow margin were lower due to a notable increase in capital expenditure.
Monitor the trend in capital expenditure, as it increased compared to both the prior quarter and the year-ago quarter, directly reducing free cash flow.