Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin improved from the prior quarter but weakened compared to the same quarter one year earlier. The filing notes forward-looking statements and risk factors that may affect future results.
- Revenue was stable compared to the same quarter last year, while operating cash flow was lower, resulting in a reduced free cash flow margin. Relative to the prior quarter, revenue grew and operating cash flow increased substantially, leading to a higher free cash flow margin.
- Compared to the prior quarter, free cash flow and margin were higher. Compared to the same quarter one year earlier, free cash flow and margin were lower, while capital expenditure was slightly higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$698.7M
Trailing twelve-month free cash flow.
Quarter free cash flow
$344.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$464.3M
Cash generated by operations before capital spending.
CapEx
$119.7M
Capital spending and related asset purchases.
FCF margin
14.0%
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 |
|---|---|---|---|---|---|
| 2022-05-01 | $1.9B | $184.5M | $71.2M | $113.3M | 6.0% |
| 2022-07-31 | $2.1B | $199.1M | $77.4M | $121.7M | 5.7% |
| 2022-10-30 | $2.2B | $204.9M | $85.8M | $119.1M | 5.4% |
| 2023-01-29 | $2.5B | $464.3M | $119.7M | $344.6M | 14.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 97.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.9% | 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
Operating cash flow improved substantially from the prior quarter, which was the primary factor behind the higher free cash flow. However, it was lower than the same quarter last year, causing the year-over-year decline in free cash flow margin.
Sustained strength in operating cash flow is essential to support free cash flow and margin going forward.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable compared to the same quarter last year, while operating cash flow was lower, resulting in a reduced free cash flow margin. Relative to the prior quarter, revenue grew and operating cash flow increased substantially, leading to a higher free cash flow margin.
Compared to the prior quarter, free cash flow and margin were higher. Compared to the same quarter one year earlier, free cash flow and margin were lower, while capital expenditure was slightly higher.
Monitor the trend in capital expenditure relative to operating cash flow, as capital expenditure increased from both the prior quarter and the year-ago quarter.