Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to both the prior quarter and the same quarter last year. Free cash flow margin improved versus both periods, driven by higher operating cash flow.
- Operating cash flow increased relative to both the prior quarter and the year-ago quarter, while capital expenditure was slightly higher than the prior quarter but moderately higher than the year-ago quarter. The resulting free cash flow and free cash flow margin both improved sequentially and year-over-year.
- Compared to the immediately preceding quarter, revenue was stable, operating cash flow was higher, capital expenditure was higher, and free cash flow and free cash flow margin were higher. Compared to the same quarter one year earlier, revenue was stable, operating cash flow was higher, capital expenditure was higher, and free cash flow and free cash flow margin were higher.
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
$475.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$546.6M
Cash generated by operations before capital spending.
CapEx
$71.0M
Capital spending and related asset purchases.
FCF margin
33.3%
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 |
|---|---|---|---|---|---|
| 2023-04-29 | $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% |
| 2024-02-03 | $1.4B | $546.6M | $71.0M | $475.6M | 33.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -121.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.2B | 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 was the strongest observable driver, rising compared to both the prior quarter and the year-ago quarter, while revenue remained stable. This improvement directly lifted free cash flow and free cash flow margin.
Higher operating cash flow, with stable revenue, drove the improvement in 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 increased relative to both the prior quarter and the year-ago quarter, while capital expenditure was slightly higher than the prior quarter but moderately higher than the year-ago quarter. The resulting free cash flow and free cash flow margin both improved sequentially and year-over-year.
Compared to the immediately preceding quarter, revenue was stable, operating cash flow was higher, capital expenditure was higher, and free cash flow and free cash flow margin were higher. Compared to the same quarter one year earlier, revenue was stable, operating cash flow was higher, capital expenditure was higher, and free cash flow and free cash flow margin were higher.
Monitor the trend in capital expenditure, which increased sequentially and year-over-year, as it directly impacts free cash flow conversion.