Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow declined compared to both the prior quarter and the same quarter last year, driven by lower revenue and operating cash flow. The free cash flow margin weakened significantly, reflecting a reduced cash conversion rate.
- Revenue decreased, leading to a lower operating cash flow. Capital expenditure also declined, but not enough to offset the drop in operating cash flow, resulting in a lower free cash flow and margin.
- Compared to the immediately preceding quarter, all metrics were lower. Compared to the same quarter one year ago, free cash flow, operating cash flow, revenue, and margin were all lower, while capital expenditure was also lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$187.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$226.8M
Cash generated by operations before capital spending.
CapEx
$39.5M
Capital spending and related asset purchases.
FCF margin
11.3%
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 |
|---|---|---|---|---|---|
| 2023-07-30 | $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% |
| 2024-04-28 | $1.7B | $226.8M | $39.5M | $187.3M | 11.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 71.9% | 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.
Operating Cash Flow Decline
Operating cash flow fell significantly from the prior quarter and year-ago period, directly reducing free cash flow. The filing context notes customer hesitancy in furniture purchases, which contributed to lower revenue.
The lower operating cash flow was the primary factor in the weakened free cash flow generation.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue decreased, leading to a lower operating cash flow. Capital expenditure also declined, but not enough to offset the drop in operating cash flow, resulting in a lower free cash flow and margin.
Compared to the immediately preceding quarter, all metrics were lower. Compared to the same quarter one year ago, free cash flow, operating cash flow, revenue, and margin were all lower, while capital expenditure was also lower.
Monitor the trajectory of operating cash flow relative to revenue, as the current quarter showed a sharper decline in cash generation.