Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue, operating cash flow, and free cash flow all improved compared to both the prior quarter and the same quarter last year. The free cash flow margin strengthened significantly versus both periods.
- Operating cash flow as a share of revenue was higher than in the preceding quarter and the year-ago quarter, driving a stronger free cash flow margin. Capital expenditure increased in absolute terms but remained a manageable portion of operating cash flow.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved. Versus the same quarter one year earlier, all metrics were higher, with free cash flow and its margin showing substantial improvement.
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
$980.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.2B
Cash generated by operations before capital spending.
CapEx
$236.2M
Capital spending and related asset purchases.
FCF margin
18.8%
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 | $4.3B | -$416.3M | $109.8M | -$526.1M | -12.1% |
| 2022-07-30 | $4.6B | $360.0M | $133.5M | $226.5M | 4.9% |
| 2022-10-29 | $4.6B | $528.9M | $174.6M | $354.4M | 7.8% |
| 2023-01-28 | $5.2B | $1.2B | $236.2M | $980.5M | 18.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 219.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | $2.1B | 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 substantially higher than both the prior quarter and the year-ago quarter, providing the primary lift to free cash flow. This improvement occurred even as revenue grew, indicating a higher conversion of revenue into cash from operations.
The stronger operating cash flow directly enabled a higher free cash flow and a significantly improved 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 as a share of revenue was higher than in the preceding quarter and the year-ago quarter, driving a stronger free cash flow margin. Capital expenditure increased in absolute terms but remained a manageable portion of operating cash flow.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved. Versus the same quarter one year earlier, all metrics were higher, with free cash flow and its margin showing substantial improvement.
Monitor whether capital expenditure continues to rise relative to operating cash flow, as it increased in both sequential and year-over-year comparisons.