Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned negative as operating cash flow declined sharply, while capital expenditure remained elevated relative to the prior year period. Revenue was lower than the preceding quarter but higher than the same quarter one year earlier.
- Operating cash flow was insufficient to cover capital expenditure, resulting in a negative free cash flow margin. The conversion from revenue to free cash flow weakened significantly compared to both the prior quarter and the year-ago quarter.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow both decreased, and the margin turned from positive to negative. Versus the same quarter one year earlier, operating cash flow and free cash flow were also lower, while capital expenditure was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$84.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$172.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$191.1M
Cash generated by operations before capital spending.
CapEx
$363.1M
Capital spending and related asset purchases.
FCF margin
-1.8%
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 |
|---|---|---|---|---|---|
| 2022-07-29 | $9.4B | $498.5M | $377.2M | $121.3M | 1.3% |
| 2022-10-28 | $9.5B | $300.2M | $419.4M | -$119.3M | -1.3% |
| 2023-02-03 | $10.2B | $736.4M | $482.4M | $254.0M | 2.5% |
| 2023-05-05 | $9.3B | $191.1M | $363.1M | -$172.0M | -1.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -33.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.9% | 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 Pressure
Operating cash flow was the strongest observable driver of the negative free cash flow, as it fell markedly from the prior quarter and the year-ago quarter. The decline was not offset by a reduction in capital expenditure, which remained above the year-ago level.
The combined effect was a shift from positive to negative free cash flow and a weakened cash conversion margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was insufficient to cover capital expenditure, resulting in a negative free cash flow margin. The conversion from revenue to free cash flow weakened significantly compared to both the prior quarter and the year-ago quarter.
Compared to the immediately preceding quarter, operating cash flow and free cash flow both decreased, and the margin turned from positive to negative. Versus the same quarter one year earlier, operating cash flow and free cash flow were also lower, while capital expenditure was higher.
Monitor the trend in operating cash flow given the pronounced decline from both comparative periods.