Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both increased compared to the prior quarter, leading to a higher free cash flow and an improved free cash flow margin. The year-ago quarter lacked capital expenditure and free cash flow data, limiting direct comparison.
- Operating cash flow as a proportion of revenue was higher than the prior quarter, and after deducting capital expenditure, free cash flow margin also improved. The conversion from revenue to free cash flow strengthened sequentially.
- Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin were all higher. Compared to the same quarter one year earlier, revenue and operating cash flow were higher, but capital expenditure and free cash flow data were not supplied for that period.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
n/a
Trailing twelve-month free cash flow.
Quarter free cash flow
$360.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$425.0M
Cash generated by operations before capital spending.
CapEx
$65.0M
Capital spending and related asset purchases.
FCF margin
20.1%
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 |
|---|---|---|---|---|---|
| 2022-10-31 | $1.6B | $408.7M | n/a | n/a | n/a |
| 2023-01-31 | $1.6B | $694.3M | n/a | n/a | n/a |
| 2023-04-30 | $1.7B | $277.0M | $59.0M | $218.0M | 12.9% |
| 2023-07-31 | $1.8B | $425.0M | $65.0M | $360.0M | 20.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 455.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.5B | 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 Growth
Operating cash flow increased from the prior quarter and was substantially higher than the same quarter last year, driving the improvement in free cash flow and margin.
The higher operating cash flow was the strongest observable driver of the quarter's free cash flow improvement.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue was higher than the prior quarter, and after deducting capital expenditure, free cash flow margin also improved. The conversion from revenue to free cash flow strengthened sequentially.
Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin were all higher. Compared to the same quarter one year earlier, revenue and operating cash flow were higher, but capital expenditure and free cash flow data were not supplied for that period.
Monitor whether the sequential improvement in free cash flow margin persists, given the absence of year-ago capital expenditure data for context.