Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin weakened sequentially but improved compared to the same quarter last year. Operating cash flow was the primary driver of the change in free cash flow.
- Revenue was stable versus the prior year, while operating cash flow was lower, leading to a lower free cash flow margin. Capital expenditure was slightly higher than both comparison periods.
- Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and margin were all lower. Compared to the same quarter one year earlier, revenue was stable, operating cash flow and free cash flow were lower, and margin weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$270.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$311.3M
Cash generated by operations before capital spending.
CapEx
$40.7M
Capital spending and related asset purchases.
FCF margin
22.1%
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 |
|---|---|---|---|---|---|
| 2023-02-28 | $1.3B | $569.1M | $31.1M | $538.0M | 40.0% |
| 2023-05-31 | $1.2B | $417.4M | $46.0M | $371.4M | 30.8% |
| 2023-08-31 | $1.3B | $693.0M | $38.7M | $654.3M | 52.2% |
| 2023-11-30 | $1.2B | $311.3M | $40.7M | $270.6M | 22.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 68.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | 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 Decline
Operating cash flow was lower sequentially and year-over-year, which directly reduced free cash flow despite relatively stable revenue. Capital expenditure was slightly higher but not the primary factor.
The lower operating cash flow weakened free cash flow and margin compared to both prior periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable versus the prior year, while operating cash flow was lower, leading to a lower free cash flow margin. Capital expenditure was slightly higher than both comparison periods.
Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and margin were all lower. Compared to the same quarter one year earlier, revenue was stable, operating cash flow and free cash flow were lower, and margin weakened.
Monitor the trend in operating cash flow relative to revenue, as it drove the decline in free cash flow this quarter.