Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue declined from the prior quarter but rose compared to the same quarter last year. Free cash flow improved sharply from the prior quarter, though it was lower than the year-ago level.
- Operating cash flow was higher than the prior quarter, while capital expenditure was lower, resulting in a free cash flow that was significantly higher than the prior quarter. The free cash flow margin improved from the prior quarter but weakened compared to the same quarter last year.
- Compared to the prior quarter, revenue was lower, operating cash flow was higher, capital expenditure was lower, and free cash flow was higher. Compared to the same quarter one year earlier, revenue was higher, operating cash flow was lower, capital expenditure was slightly higher, and free cash flow was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.3B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.5B
Cash generated by operations before capital spending.
CapEx
$161.0M
Capital spending and related asset purchases.
FCF margin
13.2%
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 |
|---|---|---|---|---|---|
| 2022-07-03 | $9.2B | $659.0M | $224.0M | $435.0M | 4.7% |
| 2022-10-02 | $10.0B | $1.3B | $255.0M | $1.0B | 10.3% |
| 2022-12-31 | $10.9B | $669.0M | $494.0M | $175.0M | 1.6% |
| 2023-04-02 | $9.9B | $1.5B | $161.0M | $1.3B | 13.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 178.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$8.5B | 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 from the prior quarter, while capital expenditure declined, leading to a substantial improvement in free cash flow. The free cash flow margin also improved sequentially.
The combination of higher operating cash flow and lower capital expenditure drove free cash flow higher than the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was higher than the prior quarter, while capital expenditure was lower, resulting in a free cash flow that was significantly higher than the prior quarter. The free cash flow margin improved from the prior quarter but weakened compared to the same quarter last year.
Compared to the prior quarter, revenue was lower, operating cash flow was higher, capital expenditure was lower, and free cash flow was higher. Compared to the same quarter one year earlier, revenue was higher, operating cash flow was lower, capital expenditure was slightly higher, and free cash flow was lower.
Monitor capital expenditure levels, which decreased sharply from the prior quarter and were only slightly above the year-ago quarter.