Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue decreased from the prior quarter but increased from the same quarter last year. Free cash flow margin weakened significantly compared to both periods.
- Cash conversion weakened as operating cash flow declined relative to revenue, resulting in a lower free cash flow margin.
- Compared to the prior quarter, operating cash flow and free cash flow were lower, and margin contracted. Versus the same quarter last year, operating cash flow and free cash flow were lower despite higher revenue.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$17.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.4B
Cash generated by operations before capital spending.
CapEx
$134.0M
Capital spending and related asset purchases.
FCF margin
15.3%
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 | $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% |
| 2023-10-28 | $14.7B | $2.4B | $134.0M | $2.2B | 15.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 61.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | $2.0B | 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 Decline
Operating cash flow decreased sharply from both the prior quarter and the same quarter last year, driving a lower free cash flow margin.
Future free cash flow depends on the recovery of operating cash generation.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Cash conversion weakened as operating cash flow declined relative to revenue, resulting in a lower free cash flow margin.
Compared to the prior quarter, operating cash flow and free cash flow were lower, and margin contracted. Versus the same quarter last year, operating cash flow and free cash flow were lower despite higher revenue.
Monitor the trend in operating cash flow generation as it is the primary driver of free cash flow.