Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive and its margin improved compared to both the prior quarter and the same quarter last year. Operating cash flow strengthened while capital expenditure increased modestly.
- Operating cash flow rose relative to the prior quarter and the year-ago quarter, yielding higher free cash flow despite a larger capital expenditure. The free cash flow margin improved sequentially and compared to the same period a year earlier.
- Sequentially, revenue was slightly lower but operating cash flow and free cash flow were higher, improving the margin. Compared to the same quarter last year, all metrics were higher except capital expenditure, which was slightly higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$455.5M
Trailing twelve-month free cash flow.
Quarter free cash flow
$242.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$715.3M
Cash generated by operations before capital spending.
CapEx
$472.6M
Capital spending and related asset purchases.
FCF margin
2.5%
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 |
|---|---|---|---|---|---|
| 2023-02-03 | $10.2B | $736.4M | $482.4M | $254.0M | 2.5% |
| 2023-05-05 | $9.3B | $191.1M | $363.1M | -$172.0M | -1.8% |
| 2023-08-04 | $9.8B | $535.6M | $404.8M | $130.8M | 1.3% |
| 2023-11-03 | $9.7B | $715.3M | $472.6M | $242.7M | 2.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 87.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.9% | 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 strength
Operating cash flow was significantly higher than both the prior quarter and the same quarter a year earlier, driving the improvement in free cash flow.
Stronger operating cash flow was the primary factor behind the shift to positive free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow rose relative to the prior quarter and the year-ago quarter, yielding higher free cash flow despite a larger capital expenditure. The free cash flow margin improved sequentially and compared to the same period a year earlier.
Sequentially, revenue was slightly lower but operating cash flow and free cash flow were higher, improving the margin. Compared to the same quarter last year, all metrics were higher except capital expenditure, which was slightly higher.
Monitor the trajectory of capital expenditure, as it increased despite a slight decline in revenue.