Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The quarter's free cash flow margin improved substantially compared to both the prior quarter and the same quarter last year. Operating cash flow rose while capital expenditure fell relative to the year-ago period.
- Revenue was higher than the prior quarter but lower than the year-ago quarter. Operating cash flow more than covered capital expenditure, resulting in strong free cash flow and a margin that improved from both comparison periods.
- Compared with the immediately preceding quarter, revenue, operating cash flow, free cash flow, and margin all increased. Versus the same quarter one year ago, revenue was lower but operating cash flow, free cash flow, and margin were higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$621.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$674.9M
Cash generated by operations before capital spending.
CapEx
$53.6M
Capital spending and related asset purchases.
FCF margin
27.3%
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 | $1.8B | $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% |
| 2024-01-28 | $2.3B | $674.9M | $53.6M | $621.2M | 27.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 175.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.4% | 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.
Stronger operating cash generation
Operating cash flow rose significantly from both the prior quarter and the year-ago quarter, while capital expenditure was lower than the year-ago period. This combination drove the improvement in free cash flow and margin.
The higher operating cash flow more than offset the year-over-year decline in revenue, resulting in a stronger free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than the prior quarter but lower than the year-ago quarter. Operating cash flow more than covered capital expenditure, resulting in strong free cash flow and a margin that improved from both comparison periods.
Compared with the immediately preceding quarter, revenue, operating cash flow, free cash flow, and margin all increased. Versus the same quarter one year ago, revenue was lower but operating cash flow, free cash flow, and margin were higher.
Monitor whether operating cash flow can sustain its current level relative to revenue in future quarters.