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 weakened versus both periods, as operating cash flow declined while capital expenditure rose.
- Revenue was higher, but operating cash flow was lower than the prior quarter and the year-ago quarter, resulting in a lower free cash flow margin. Capital expenditure increased compared to both periods, further reducing free cash flow.
- Compared to the immediately preceding quarter, revenue improved while operating cash flow, free cash flow, and free cash flow margin all weakened. Versus the same quarter one year earlier, revenue was higher, but operating cash flow, free cash flow, and free cash flow margin were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$797.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.1B
Cash generated by operations before capital spending.
CapEx
$284.3M
Capital spending and related asset purchases.
FCF margin
24.4%
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 |
|---|---|---|---|---|---|
| 2022-07-30 | $3.1B | $1.2B | $164.9M | $1.1B | 34.8% |
| 2022-10-29 | $3.2B | $1.1B | $304.5M | $844.8M | 26.0% |
| 2023-01-28 | $3.2B | $1.4B | $176.2M | $1.2B | 37.9% |
| 2023-04-29 | $3.3B | $1.1B | $284.3M | $797.2M | 24.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 81.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 8.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.3B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital Expenditure Increase
Capital expenditure was higher than both the prior quarter and the same quarter last year, contributing to the decline in free cash flow despite higher revenue.
The rise in capital expenditure was the strongest observable driver of the weakened 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, but operating cash flow was lower than the prior quarter and the year-ago quarter, resulting in a lower free cash flow margin. Capital expenditure increased compared to both periods, further reducing free cash flow.
Compared to the immediately preceding quarter, revenue improved while operating cash flow, free cash flow, and free cash flow margin all weakened. Versus the same quarter one year earlier, revenue was higher, but operating cash flow, free cash flow, and free cash flow margin were lower.
Monitor the trend in capital expenditure, which increased notably from both the prior quarter and the year-ago quarter.