Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue rose from both the prior quarter and the same quarter last year, while operating cash flow and free cash flow improved sequentially but declined year-over-year. The free cash flow margin strengthened from the prior period but weakened compared to the year-ago quarter.
- Free cash flow reflected operating cash flow after capital expenditure, resulting in a free cash flow margin that was higher than the prior quarter but lower than the same quarter one year earlier.
- Revenue increased in both the sequential and year-over-year comparisons. Operating cash flow and free cash flow improved from the prior quarter but were lower than the year-ago period. Capital expenditure was higher in both comparisons.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$568.9M
Trailing twelve-month free cash flow.
Quarter free cash flow
$143.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$164.8M
Cash generated by operations before capital spending.
CapEx
$21.9M
Capital spending and related asset purchases.
FCF margin
21.6%
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 |
|---|---|---|---|---|---|
| 2023-10-31 | $719.3M | $163.2M | $10.3M | $152.9M | 21.3% |
| 2024-01-31 | $633.2M | $172.4M | $7.5M | $164.8M | 26.0% |
| 2024-04-30 | $650.6M | $122.6M | $14.4M | $108.2M | 16.6% |
| 2024-07-31 | $661.6M | $164.8M | $21.9M | $143.0M | 21.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 121.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.3B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Sequential operating cash flow improvement
The sequential rise in operating cash flow was the most significant observable change. The filing indicated that improvements in accounts receivable and inventory contributed, partially offset by declines in customer advances, accounts payable, and accrued liabilities.
This improvement in operating cash flow drove the free cash flow margin higher sequentially.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Free cash flow reflected operating cash flow after capital expenditure, resulting in a free cash flow margin that was higher than the prior quarter but lower than the same quarter one year earlier.
Revenue increased in both the sequential and year-over-year comparisons. Operating cash flow and free cash flow improved from the prior quarter but were lower than the year-ago period. Capital expenditure was higher in both comparisons.
Monitor the trajectory of capital expenditure, which rose from both the prior quarter and the year-ago quarter.