Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow improved sharply from the prior quarter, driving a swing to positive free cash flow. Revenue was slightly higher sequentially but lower than the same quarter last year.
- Operating cash flow was significantly higher than the prior quarter, while capital expenditure remained stable, resulting in a positive free cash flow margin. Compared to the same quarter last year, operating cash flow was lower, leading to a slightly weaker free cash flow margin.
- Compared to the immediately preceding quarter, revenue was slightly higher and operating cash flow was substantially higher, turning free cash flow from negative to positive. Versus the same quarter one year earlier, revenue was lower and operating cash flow was lower, resulting in a lower free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$562.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.7B
Cash generated by operations before capital spending.
CapEx
$759.0M
Capital spending and related asset purchases.
FCF margin
7.8%
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 |
|---|---|---|---|---|---|
| 2022-04-29 | $26.1B | -$269.0M | $690.0M | -$959.0M | -3.7% |
| 2022-07-29 | $26.4B | $724.0M | $807.0M | -$83.0M | -0.3% |
| 2022-10-28 | $24.7B | $396.0M | $747.0M | -$351.0M | -1.4% |
| 2023-02-03 | $25.0B | $2.7B | $759.0M | $2.0B | 7.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 318.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$21.0B | 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 Recovery
Operating cash flow increased substantially from the prior quarter, which was the primary factor behind the swing to positive free cash flow. This improvement occurred despite revenue being only slightly higher.
The stronger operating cash flow directly enabled positive free cash flow and a higher margin this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was significantly higher than the prior quarter, while capital expenditure remained stable, resulting in a positive free cash flow margin. Compared to the same quarter last year, operating cash flow was lower, leading to a slightly weaker free cash flow margin.
Compared to the immediately preceding quarter, revenue was slightly higher and operating cash flow was substantially higher, turning free cash flow from negative to positive. Versus the same quarter one year earlier, revenue was lower and operating cash flow was lower, resulting in a lower free cash flow margin.
Monitor whether operating cash flow can sustain its improved level relative to the prior quarter.