Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The current quarter's free cash flow and margin both improved relative to the preceding quarter and the same quarter one year earlier. Operating cash flow was the primary driver of the increase.
- Revenue rose while operating cash flow increased at a faster pace, resulting in a higher free cash flow margin. Capital expenditure decreased sequentially but remained above the year-ago level, supporting the conversion of revenue into free cash flow.
- Compared with the preceding quarter, all key metrics were higher, and the free cash flow margin strengthened. When measured against the same quarter one year earlier, every metric was also higher, with the margin showing a notable improvement.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$19.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$5.7B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$6.0B
Cash generated by operations before capital spending.
CapEx
$233.0M
Capital spending and related asset purchases.
FCF margin
37.7%
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 |
|---|---|---|---|---|---|
| 2022-10-29 | $13.6B | $4.0B | $176.0M | $3.8B | 27.8% |
| 2023-01-28 | $13.6B | $4.7B | $170.0M | $4.6B | 33.6% |
| 2023-04-29 | $14.6B | $5.2B | $270.0M | $4.9B | 34.0% |
| 2023-07-29 | $15.2B | $6.0B | $233.0M | $5.7B | 37.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 144.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | $1.7B | 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
Operating cash flow improved substantially from both the preceding quarter and the year-ago quarter, outpacing the revenue growth and directly boosting free cash flow.
This strong cash generation was the main reason for the higher free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose while operating cash flow increased at a faster pace, resulting in a higher free cash flow margin. Capital expenditure decreased sequentially but remained above the year-ago level, supporting the conversion of revenue into free cash flow.
Compared with the preceding quarter, all key metrics were higher, and the free cash flow margin strengthened. When measured against the same quarter one year earlier, every metric was also higher, with the margin showing a notable improvement.
The filing discusses supply chain risks that could affect component supply and manufacturing capacity.