Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
For the quarter, free cash flow margin improved compared to the same quarter last year but weakened from the prior quarter. The company generated higher free cash flow relative to revenue despite lower revenue.
- Revenue was unchanged from the prior quarter and lower than a year ago. Operating cash flow decreased from the prior quarter but increased from a year ago. Capital expenditure was lower both sequentially and year-over-year, contributing to a free cash flow margin that was higher than a year ago but lower than the previous quarter.
- Compared to the prior quarter, operating cash flow and free cash flow were lower, leading to a lower free cash flow margin. Compared to the same quarter a year earlier, operating cash flow was higher, capital expenditure was lower, and free cash flow was substantially higher, resulting in a much improved free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$248.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$290.4M
Cash generated by operations before capital spending.
CapEx
$42.0M
Capital spending and related asset purchases.
FCF margin
13.4%
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 |
|---|---|---|---|---|---|
| 2023-01-29 | $2.5B | $464.3M | $119.7M | $344.6M | 14.0% |
| 2023-04-30 | $1.8B | $342.5M | $50.0M | $292.5M | 16.7% |
| 2023-07-30 | $1.9B | $372.5M | $42.9M | $329.6M | 17.7% |
| 2023-10-29 | $1.9B | $290.4M | $42.0M | $248.5M | 13.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 104.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.3% | 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.
Improved year-over-year cash conversion
The free cash flow margin increased from a year ago, driven by higher operating cash flow and lower capital spending.
The company converted a larger portion of revenue into free cash flow compared to the year-ago period.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was unchanged from the prior quarter and lower than a year ago. Operating cash flow decreased from the prior quarter but increased from a year ago. Capital expenditure was lower both sequentially and year-over-year, contributing to a free cash flow margin that was higher than a year ago but lower than the previous quarter.
Compared to the prior quarter, operating cash flow and free cash flow were lower, leading to a lower free cash flow margin. Compared to the same quarter a year earlier, operating cash flow was higher, capital expenditure was lower, and free cash flow was substantially higher, resulting in a much improved free cash flow margin.
Monitor the trend of capital expenditure as it decreased significantly from a year ago and remained lower than the prior quarter.