Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower than the prior quarter but higher than the same quarter last year. Operating cash flow and free cash flow were lower than both comparison periods, resulting in a weakened free cash flow margin.
- The company converted a lower proportion of revenue into operating cash flow compared to both the prior quarter and the year-ago quarter. Capital expenditure was higher than the year-ago quarter, further reducing free cash flow.
- Compared to the prior quarter, revenue declined and operating cash flow decreased more sharply, leading to a much lower free cash flow margin. Versus the year-ago quarter, revenue increased but operating cash flow fell, so free cash flow margin weakened.
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
$195.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$304.9M
Cash generated by operations before capital spending.
CapEx
$109.8M
Capital spending and related asset purchases.
FCF margin
7.4%
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 | $2.3B | $114.4M | $49.4M | $64.9M | 2.8% |
| 2022-10-29 | $2.3B | $32.8M | $83.5M | -$50.7M | -2.2% |
| 2023-01-28 | $3.2B | $908.5M | $108.2M | $800.3M | 24.8% |
| 2023-04-29 | $2.6B | $304.9M | $109.8M | $195.1M | 7.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 56.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.2% | 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.
Operating cash flow decline
The primary driver of the weaker free cash flow was the drop in operating cash flow, which fell more than revenue relative to both comparison periods. This was the strongest observable factor.
Continued lower operating cash flow could pressure free cash flow generation if capital expenditure remains elevated.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The company converted a lower proportion of revenue into operating cash flow compared to both the prior quarter and the year-ago quarter. Capital expenditure was higher than the year-ago quarter, further reducing free cash flow.
Compared to the prior quarter, revenue declined and operating cash flow decreased more sharply, leading to a much lower free cash flow margin. Versus the year-ago quarter, revenue increased but operating cash flow fell, so free cash flow margin weakened.
Monitor whether operating cash flow can recover to levels seen in prior periods.