Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow turned positive from a negative position a year earlier, driving free cash flow into positive territory. Revenue was higher than both the prior quarter and the same quarter last year, while capital expenditure increased year over year.
- Revenue was higher than the prior quarter and the same quarter last year. Operating cash flow improved significantly from a negative level a year ago, and free cash flow turned positive. The free cash flow margin was positive, compared to a negative margin in the same quarter last year.
- Compared to the immediately preceding quarter, revenue was lower, operating cash flow was lower, capital expenditure was lower, free cash flow was lower, and the free cash flow margin was lower. Compared to the same quarter one year earlier, revenue was higher, operating cash flow was higher, capital expenditure was higher, free cash flow was higher, and the free cash flow margin was higher.
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
$245.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$413.2M
Cash generated by operations before capital spending.
CapEx
$167.3M
Capital spending and related asset purchases.
FCF margin
5.5%
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 |
|---|---|---|---|---|---|
| 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% |
| 2023-04-29 | $4.5B | $413.2M | $167.3M | $245.9M | 5.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 66.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | $2.0B | 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 recovery
Operating cash flow improved from a negative amount in the same quarter last year to a positive amount this quarter, supported by net earnings and higher accounts payable leverage as noted in the filing.
This recovery was the primary factor behind the positive free cash flow this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than the prior quarter and the same quarter last year. Operating cash flow improved significantly from a negative level a year ago, and free cash flow turned positive. The free cash flow margin was positive, compared to a negative margin in the same quarter last year.
Compared to the immediately preceding quarter, revenue was lower, operating cash flow was lower, capital expenditure was lower, free cash flow was lower, and the free cash flow margin was lower. Compared to the same quarter one year earlier, revenue was higher, operating cash flow was higher, capital expenditure was higher, free cash flow was higher, and the free cash flow margin was higher.
Monitor the level of capital expenditure relative to operating cash flow, as it consumed a larger share of operating cash flow this quarter compared to the prior quarter.