Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was nearly stable versus the same quarter one year earlier, while operating cash flow and free cash flow both improved, resulting in a higher free cash flow margin. Compared to the immediately preceding quarter, all cash metrics weakened as revenue, operating cash flow, and free cash flow declined and the margin narrowed.
- Free cash flow was higher than the year-ago quarter even though revenue was essentially flat, driven by increased operating cash flow alongside lower capital expenditure. The free cash flow margin rose compared to the same quarter last year, indicating improved cash conversion from revenue, but fell from the prior quarter due to lower operating cash flow.
- Relative to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin all were lower. Versus the same quarter one year earlier, revenue was nearly unchanged, while operating cash flow, free cash flow, and free cash flow margin improved, and capital expenditure decreased.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$470.1M
Trailing twelve-month free cash flow.
Quarter free cash flow
$114.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$123.3M
Cash generated by operations before capital spending.
CapEx
$9.3M
Capital spending and related asset purchases.
FCF margin
18.7%
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 | $635.4M | $96.4M | $12.3M | $84.1M | 13.2% |
| 2022-07-31 | $662.1M | $125.2M | $14.6M | $110.6M | 16.7% |
| 2022-10-31 | $683.6M | $173.4M | $12.1M | $161.4M | 23.6% |
| 2023-01-31 | $610.5M | $123.3M | $9.3M | $114.0M | 18.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 109.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$894.1M | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Improved Free Cash Flow from Operations
Operating cash flow increased compared to the same quarter one year earlier, and capital expenditure was lower, leading to higher free cash flow despite essentially flat revenue. The free cash flow margin also rose year over year.
This improvement in free cash flow provided additional cash resources for the quarter, partially offsetting cash used for the acquisition.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Free cash flow was higher than the year-ago quarter even though revenue was essentially flat, driven by increased operating cash flow alongside lower capital expenditure. The free cash flow margin rose compared to the same quarter last year, indicating improved cash conversion from revenue, but fell from the prior quarter due to lower operating cash flow.
Relative to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin all were lower. Versus the same quarter one year earlier, revenue was nearly unchanged, while operating cash flow, free cash flow, and free cash flow margin improved, and capital expenditure decreased.
Monitor changes in accounts payable and accrued liabilities, as the filing noted they were a primary driver of the decline in cash from changes in operating assets and liabilities.