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, driving free cash flow higher. Free cash flow margin improved slightly, while capital expenditure was lower.
- Operating cash flow exceeded capital expenditure, resulting in positive free cash flow. The free cash flow margin indicates that a portion of revenue was converted into free cash flow.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were higher, and free cash flow margin improved. Compared to the same quarter one year earlier, revenue and operating cash flow were higher, but capital expenditure and free cash flow data for that period are not available.
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
$391.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$451.0M
Cash generated by operations before capital spending.
CapEx
$60.0M
Capital spending and related asset purchases.
FCF margin
21.0%
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 |
|---|---|---|---|---|---|
| 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% |
| 2023-10-31 | $1.9B | $451.0M | $60.0M | $391.0M | 21.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 343.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.4B | 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 year-ago period, supporting higher free cash flow.
This driver directly boosted free cash flow, which was the primary factor behind the improvement.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow exceeded capital expenditure, resulting in positive free cash flow. The free cash flow margin indicates that a portion of revenue was converted into free cash flow.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were higher, and free cash flow margin improved. Compared to the same quarter one year earlier, revenue and operating cash flow were higher, but capital expenditure and free cash flow data for that period are not available.
Monitor the trend in capital expenditure, as it declined from the prior quarter and year-ago data is missing.