Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable versus the prior quarter but lower than a year ago. Free cash flow narrowed to near zero as operating cash flow declined sharply while capital expenditure rose.
- Operating cash flow as a proportion of revenue weakened significantly compared to both the prior quarter and the year-ago quarter, resulting in a free cash flow margin that fell to a minimal level.
- Compared to the immediately preceding quarter, operating cash flow was lower and capital expenditure was higher, causing free cash flow to drop sharply. Versus the same quarter one year earlier, revenue, operating cash flow, and free cash flow were all lower, while capital expenditure was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$775.8M
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$112.5M
Cash generated by operations before capital spending.
CapEx
$111.1M
Capital spending and related asset purchases.
FCF margin
0.1%
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 |
|---|---|---|---|---|---|
| 2022-10-29 | $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% |
| 2023-07-29 | $1.3B | $112.5M | $111.1M | $1.4M | 0.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -0.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 8.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.7B | 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 decline
Operating cash flow fell by nearly half from the prior quarter and was substantially lower than a year ago, while capital expenditure increased. This combination drove free cash flow to a minimal amount.
The sharp drop in operating cash flow was the strongest observable factor reducing free cash flow.
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 weakened significantly compared to both the prior quarter and the year-ago quarter, resulting in a free cash flow margin that fell to a minimal level.
Compared to the immediately preceding quarter, operating cash flow was lower and capital expenditure was higher, causing free cash flow to drop sharply. Versus the same quarter one year earlier, revenue, operating cash flow, and free cash flow were all lower, while capital expenditure was higher.
Monitor whether operating cash flow can recover from its current low level relative to revenue.