Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and free cash flow both increased compared to the prior quarter and the same quarter last year. The free cash flow margin was slightly lower than the prior quarter but higher than the year-ago period.
- Operating cash flow increased in line with revenue growth, while capital expenditure decreased, resulting in higher free cash flow. The free cash flow margin remained above half of revenue, indicating strong cash conversion efficiency.
- Sequentially, revenue and free cash flow improved, while the free cash flow margin weakened slightly. Compared to the same quarter one year earlier, revenue, operating cash flow, free cash flow, and margin all improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$17.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$4.7B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$4.8B
Cash generated by operations before capital spending.
CapEx
$105.0M
Capital spending and related asset purchases.
FCF margin
50.8%
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 |
|---|---|---|---|---|---|
| 2023-01-29 | $8.9B | $4.0B | $103.0M | $3.9B | 44.1% |
| 2023-04-30 | $8.7B | $4.5B | $122.0M | $4.4B | 50.2% |
| 2023-07-30 | $8.9B | $4.7B | $122.0M | $4.6B | 51.8% |
| 2023-10-29 | $9.3B | $4.8B | $105.0M | $4.7B | 50.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 134.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.1% | 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.
Revenue Growth and Operating Cash Flow
Revenue increased from the prior quarter and the year-ago quarter, which was accompanied by a higher operating cash flow. This relationship was the most observable factor supporting the improvement in free cash flow.
Higher operating cash flow directly contributed to a larger free cash flow despite a slightly reduced margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow increased in line with revenue growth, while capital expenditure decreased, resulting in higher free cash flow. The free cash flow margin remained above half of revenue, indicating strong cash conversion efficiency.
Sequentially, revenue and free cash flow improved, while the free cash flow margin weakened slightly. Compared to the same quarter one year earlier, revenue, operating cash flow, free cash flow, and margin all improved.
Monitor the level of capital expenditure relative to operating cash flow, as it declined from both the prior quarter and the year-ago period.