Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable while operating cash flow and free cash flow both improved compared to the prior quarter and the same quarter one year earlier. The free cash flow margin strengthened significantly relative to both comparison periods.
- Operating cash flow was substantially higher than capital expenditure, resulting in a large free cash flow. The free cash flow margin increased versus the prior quarter and was much higher than a year earlier, indicating a stronger conversion of revenue into free cash flow.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow were higher, while revenue was stable and capital expenditure was slightly lower. Versus the same quarter one year earlier, all metrics improved: revenue, operating cash flow, free cash flow, and free cash flow margin were higher, and capital expenditure was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$15.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$4.6B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$4.7B
Cash generated by operations before capital spending.
CapEx
$170.0M
Capital spending and related asset purchases.
FCF margin
33.6%
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 |
|---|---|---|---|---|---|
| 2022-04-30 | $12.8B | $3.7B | $106.0M | $3.6B | 27.7% |
| 2022-07-30 | $13.1B | $3.7B | $139.0M | $3.5B | 27.0% |
| 2022-10-29 | $13.6B | $4.0B | $176.0M | $3.8B | 27.8% |
| 2023-01-28 | $13.6B | $4.7B | $170.0M | $4.6B | 33.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 164.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | $122.0M | 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 Strength
Operating cash flow was the strongest observable driver, rising substantially from both the prior quarter and the same quarter last year. This increase directly supported the higher free cash flow and margin.
The elevated operating cash flow improved free cash flow and margin without a corresponding increase in revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was substantially higher than capital expenditure, resulting in a large free cash flow. The free cash flow margin increased versus the prior quarter and was much higher than a year earlier, indicating a stronger conversion of revenue into free cash flow.
Compared to the immediately preceding quarter, operating cash flow and free cash flow were higher, while revenue was stable and capital expenditure was slightly lower. Versus the same quarter one year earlier, all metrics improved: revenue, operating cash flow, free cash flow, and free cash flow margin were higher, and capital expenditure was lower.
Monitor operating cash flow trends relative to revenue, as the current level is a key driver of the improved cash conversion.