Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter last year. Free cash flow margin improved versus the previous quarter but was lower than the year-ago period.
- Operating cash flow was higher sequentially, contributing to the improved free cash flow and margin. Capital expenditure increased slightly from the prior quarter but remained stable relative to the year-ago period.
- Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all showed improvement. Versus the same quarter one year earlier, revenue was higher, but operating cash flow, free cash flow, and free cash flow margin were all lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$7.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.1B
Cash generated by operations before capital spending.
CapEx
$121.0M
Capital spending and related asset purchases.
FCF margin
41.9%
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 |
|---|---|---|---|---|---|
| 2022-09-02 | $4.4B | $1.7B | $125.0M | $1.6B | 35.6% |
| 2022-12-02 | $4.5B | $2.3B | $91.0M | $2.2B | 49.4% |
| 2023-03-03 | $4.7B | $1.7B | $101.0M | $1.6B | 34.2% |
| 2023-06-02 | $4.8B | $2.1B | $121.0M | $2.0B | 41.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 155.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | $1.8B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Sequential Margin Expansion
The free cash flow margin increased significantly from the prior quarter, driven by a larger sequential increase in operating cash flow than in revenue.
This sequential improvement in cash conversion efficiency was the strongest observable driver for the period.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was higher sequentially, contributing to the improved free cash flow and margin. Capital expenditure increased slightly from the prior quarter but remained stable relative to the year-ago period.
Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all showed improvement. Versus the same quarter one year earlier, revenue was higher, but operating cash flow, free cash flow, and free cash flow margin were all lower.
Monitor the trajectory of operating cash flow relative to revenue, as it weakened on a year-over-year basis despite higher revenue.