Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sharply versus both the prior quarter and the same quarter last year, driven by a significant increase in operating cash flow. The free cash flow margin expanded notably, reflecting stronger cash conversion from revenue.
- Revenue was slightly lower than the prior quarter but comparable to the year-ago quarter, while operating cash flow rose substantially, leading to a higher free cash flow margin. Capital expenditure increased moderately from both comparison periods, but the growth in operating cash flow more than offset the higher spending.
- Compared to the prior quarter, free cash flow and free cash flow margin were higher, with operating cash flow improving while revenue was slightly lower. Versus the same quarter one year earlier, free cash flow and margin were also higher, supported by stronger operating cash flow despite a modest increase in capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$7.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$5.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$5.7B
Cash generated by operations before capital spending.
CapEx
$611.0M
Capital spending and related asset purchases.
FCF margin
33.0%
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 | $12.7B | -$1.2B | $315.0M | -$1.6B | -12.3% |
| 2023-04-30 | $17.4B | $1.1B | $269.0M | $830.0M | 4.8% |
| 2023-07-30 | $15.8B | $3.0B | $303.0M | $2.7B | 17.3% |
| 2023-10-29 | $15.4B | $5.7B | $611.0M | $5.1B | 33.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 214.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.0% | 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.
Operating Cash Flow Surge
Operating cash flow rose sharply from both the prior quarter and the year-ago quarter, while revenue remained relatively stable. This was the strongest observable driver of the free cash flow improvement.
The increase in operating cash flow directly lifted free cash flow and expanded the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly lower than the prior quarter but comparable to the year-ago quarter, while operating cash flow rose substantially, leading to a higher free cash flow margin. Capital expenditure increased moderately from both comparison periods, but the growth in operating cash flow more than offset the higher spending.
Compared to the prior quarter, free cash flow and free cash flow margin were higher, with operating cash flow improving while revenue was slightly lower. Versus the same quarter one year earlier, free cash flow and margin were also higher, supported by stronger operating cash flow despite a modest increase in capital expenditure.
Monitor whether operating cash flow can sustain its elevated level relative to revenue in subsequent quarters.