Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue decreased compared to both the prior quarter and the same quarter last year. Operating cash flow and free cash flow improved sequentially but were mixed versus the year-ago period.
- Operating cash flow exceeded capital expenditure, resulting in positive free cash flow. The free cash flow margin improved from the prior quarter but was higher than the year-ago quarter.
- Compared to the immediately preceding quarter, revenue was lower while operating cash flow, free cash flow, and free cash flow margin were all higher. Versus the same quarter one year earlier, revenue was lower, operating cash flow and free cash flow were higher, and free cash flow margin was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.6B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.2B
Cash generated by operations before capital spending.
CapEx
$624.0M
Capital spending and related asset purchases.
FCF margin
11.3%
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 |
|---|---|---|---|---|---|
| 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% |
| 2023-05-05 | $20.9B | $1.8B | $701.0M | $1.1B | 5.1% |
| 2023-08-04 | $22.9B | $3.2B | $624.0M | $2.6B | 11.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 543.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$18.8B | 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 Improvement
Operating cash flow was higher than both the prior quarter and the year-ago quarter, supporting a stronger free cash flow despite lower revenue.
The increase in operating cash flow was the strongest observable driver of the improved free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow exceeded capital expenditure, resulting in positive free cash flow. The free cash flow margin improved from the prior quarter but was higher than the year-ago quarter.
Compared to the immediately preceding quarter, revenue was lower while operating cash flow, free cash flow, and free cash flow margin were all higher. Versus the same quarter one year earlier, revenue was lower, operating cash flow and free cash flow were higher, and free cash flow margin was higher.
Monitor the trend in capital expenditure relative to operating cash flow, as it directly affects free cash flow generation.