Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow improved sharply from the previous quarter, driving free cash flow and margin to their highest levels in the data. Revenue was stable sequentially but higher year-over-year.
- With operating cash flow high and capital expenditure lower than the prior quarter, free cash flow margin expanded significantly. The conversion relationship between revenue, operating cash flow, and free cash flow strengthened compared to the preceding quarter.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow were both higher, and free cash flow margin improved. Year-over-year, year-ago capital expenditure and free cash flow are missing, but revenue and operating cash flow were both higher in the current quarter.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$947.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$996.0M
Cash generated by operations before capital spending.
CapEx
$49.0M
Capital spending and related asset purchases.
FCF margin
49.3%
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 |
|---|---|---|---|---|---|
| 2023-04-30 | $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% |
| 2024-01-31 | $1.9B | $996.0M | $49.0M | $947.0M | 49.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 79.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$968.0M | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Strong operating cash flow
Operating cash flow was the strongest observable driver, increasing sharply from the prior quarter and rising year-over-year. This improvement directly lifted free cash flow and margin.
Higher operating cash flow, combined with slightly lower capital expenditure, produced a free cash flow margin that was substantially higher than the previous quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
With operating cash flow high and capital expenditure lower than the prior quarter, free cash flow margin expanded significantly. The conversion relationship between revenue, operating cash flow, and free cash flow strengthened compared to the preceding quarter.
Compared to the immediately preceding quarter, operating cash flow and free cash flow were both higher, and free cash flow margin improved. Year-over-year, year-ago capital expenditure and free cash flow are missing, but revenue and operating cash flow were both higher in the current quarter.
Monitor changes in capital expenditure, which decreased in the current quarter relative to the prior quarter.