Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter last year. Free cash flow margin weakened significantly from the prior quarter but was lower than the year-ago quarter.
- Operating cash flow was lower than revenue, resulting in a free cash flow margin that was below the revenue level. Capital expenditure was a moderate use of cash relative to operating cash flow.
- Compared to the prior quarter, revenue was higher but operating cash flow and free cash flow were lower, causing a weakened free cash flow margin. Versus the same quarter last year, revenue was higher while operating cash flow and free cash flow were lower, with a lower free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$71.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$114.8M
Cash generated by operations before capital spending.
CapEx
$43.5M
Capital spending and related asset purchases.
FCF margin
5.2%
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 | $1.3B | $750.0M | $25.6M | $724.3M | 56.6% |
| 2022-07-31 | $1.2B | $439.7M | $35.6M | $404.1M | 32.4% |
| 2022-10-31 | $818.5M | $393.5M | $33.7M | $359.9M | 44.0% |
| 2023-01-31 | $1.4B | $114.8M | $43.5M | $71.3M | 5.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 26.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.2% | 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.
Cash Conversion Efficiency
Operating cash flow was lower than both the prior quarter and the year-ago quarter, despite higher revenue. This drove a lower free cash flow margin.
The weakened cash conversion is the strongest observable driver of the lower 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 was lower than revenue, resulting in a free cash flow margin that was below the revenue level. Capital expenditure was a moderate use of cash relative to operating cash flow.
Compared to the prior quarter, revenue was higher but operating cash flow and free cash flow were lower, causing a weakened free cash flow margin. Versus the same quarter last year, revenue was higher while operating cash flow and free cash flow were lower, with a lower free cash flow margin.
Monitor the relationship between revenue and operating cash flow, as operating cash flow was lower despite higher revenue.