Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion improved sharply as operating cash flow rose while capital expenditure declined, yielding a much higher free cash flow margin. Revenue was slightly higher than the prior quarter but lower than the same quarter one year earlier.
- Operating cash flow increased substantially from the prior quarter, while capital expenditure decreased, resulting in a large improvement in free cash flow and free cash flow margin. Compared to the same quarter one year earlier, operating cash flow was higher, capital expenditure was moderately higher, and free cash flow and margin were both higher.
- Compared to the immediately preceding quarter, revenue was slightly higher, operating cash flow was much higher, capital expenditure was lower, and free cash flow and margin were substantially higher. Versus the same quarter one year earlier, revenue was lower, operating cash flow was higher, capital expenditure was moderately higher, and free cash flow and margin were higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$856.1M
Trailing twelve-month free cash flow.
Quarter free cash flow
$448.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$503.0M
Cash generated by operations before capital spending.
CapEx
$54.4M
Capital spending and related asset purchases.
FCF margin
31.6%
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 |
|---|---|---|---|---|---|
| 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% |
| 2023-10-28 | $1.4B | $503.0M | $54.4M | $448.6M | 31.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -273.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.5B | 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 Strength
Operating cash flow rose sharply from the prior quarter and was also higher than the same quarter one year earlier, driving a significant increase in free cash flow. This improvement occurred even as revenue was only slightly higher sequentially and lower year over year.
The strong operating cash flow was the primary factor behind the quarter's elevated free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow increased substantially from the prior quarter, while capital expenditure decreased, resulting in a large improvement in free cash flow and free cash flow margin. Compared to the same quarter one year earlier, operating cash flow was higher, capital expenditure was moderately higher, and free cash flow and margin were both higher.
Compared to the immediately preceding quarter, revenue was slightly higher, operating cash flow was much higher, capital expenditure was lower, and free cash flow and margin were substantially higher. Versus the same quarter one year earlier, revenue was lower, operating cash flow was higher, capital expenditure was moderately higher, and free cash flow and margin were higher.
Monitor the trend in capital expenditure, which declined from the prior quarter but remained above the year-ago level.