Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue declined from both the prior quarter and the same quarter last year, while operating cash flow improved slightly versus the prior quarter. Free cash flow margin remained relatively stable, supported by a higher proportion of operating cash flow relative to revenue.
- Operating cash flow as a percentage of revenue was higher than the prior quarter and the year-ago quarter, indicating improved cash conversion from revenue. Capital expenditure increased compared to both periods, which partially offset the gain in free cash flow margin.
- Compared to the immediately preceding quarter, revenue was lower and free cash flow was lower, though operating cash flow was higher. Versus the same quarter one year earlier, revenue was lower, free cash flow was lower, and capital expenditure was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$710.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.2B
Cash generated by operations before capital spending.
CapEx
$476.4M
Capital spending and related asset purchases.
FCF margin
26.2%
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 |
|---|---|---|---|---|---|
| 2023-01-28 | $3.2B | $1.4B | $176.2M | $1.2B | 37.9% |
| 2023-04-29 | $3.3B | $1.1B | $284.3M | $797.2M | 24.4% |
| 2023-07-29 | $3.1B | $1.1B | $324.6M | $817.9M | 26.6% |
| 2023-10-28 | $2.7B | $1.2B | $476.4M | $710.9M | 26.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 142.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 17.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.4B | 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 Resilience
Despite lower revenue, operating cash flow improved sequentially and matched the year-ago level, reflecting a higher cash conversion rate from revenue.
This supported a free cash flow margin that remained broadly stable despite higher capital spending.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a percentage of revenue was higher than the prior quarter and the year-ago quarter, indicating improved cash conversion from revenue. Capital expenditure increased compared to both periods, which partially offset the gain in free cash flow margin.
Compared to the immediately preceding quarter, revenue was lower and free cash flow was lower, though operating cash flow was higher. Versus the same quarter one year earlier, revenue was lower, free cash flow was lower, and capital expenditure was higher.
Monitor the trend in capital expenditure relative to operating cash flow, as its increase has reduced the conversion of operating cash flow into free cash flow.