Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow for the quarter was lower than both the prior quarter and the same quarter last year. The free cash flow margin also weakened over the same comparison periods.
- Revenue was lower than the prior quarter but slightly higher than a year ago. Operating cash flow and free cash flow were both lower than the preceding quarter and substantially lower than the same quarter one year earlier. Capital expenditure was higher than both comparison periods. The resulting free cash flow margin weakened compared to both periods.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all lower, while capital expenditure was higher. Versus the same quarter one year earlier, revenue was marginally higher, but operating cash flow was substantially lower, capital expenditure was higher, and free cash flow was markedly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$6.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$837.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.3B
Cash generated by operations before capital spending.
CapEx
$433.0M
Capital spending and related asset purchases.
FCF margin
12.5%
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 |
|---|---|---|---|---|---|
| 2021-10-31 | $7.1B | $1.5B | $222.0M | $1.3B | 18.3% |
| 2022-01-30 | $7.6B | $3.0B | $273.0M | $2.8B | 36.1% |
| 2022-05-01 | $8.3B | $1.7B | $361.0M | $1.4B | 16.5% |
| 2022-07-31 | $6.7B | $1.3B | $433.0M | $837.0M | 12.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 127.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$7.9B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Weakening Cash Generation Efficiency
Operating cash flow declined relative to revenue when compared to both the prior quarter and the year-ago quarter, resulting in a lower free cash flow margin.
Free cash flow decreased in absolute terms and as a margin of revenue versus both comparison periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter but slightly higher than a year ago. Operating cash flow and free cash flow were both lower than the preceding quarter and substantially lower than the same quarter one year earlier. Capital expenditure was higher than both comparison periods. The resulting free cash flow margin weakened compared to both periods.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all lower, while capital expenditure was higher. Versus the same quarter one year earlier, revenue was marginally higher, but operating cash flow was substantially lower, capital expenditure was higher, and free cash flow was markedly lower.
Monitor capital expenditure levels, as they were higher than both the prior quarter and the year-ago period while operating cash flow declined.