Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter last year. Free cash flow margin improved year-over-year but weakened sequentially.
- Operating cash flow was lower than the prior quarter, leading to a lower free cash flow margin despite higher revenue. Capital expenditure was higher than the prior quarter but lower than a year ago.
- Compared to the prior quarter, free cash flow was lower due to a decline in operating cash flow and an increase in capital expenditure. Compared to the same quarter last year, free cash flow was higher, supported by higher operating cash flow and lower capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$519.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$731.0M
Cash generated by operations before capital spending.
CapEx
$212.0M
Capital spending and related asset purchases.
FCF margin
5.1%
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 |
|---|---|---|---|---|---|
| 2022-10-02 | $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% |
| 2023-07-02 | $10.2B | $731.0M | $212.0M | $519.0M | 5.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 69.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$8.6B | 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 volatility
Operating cash flow decreased from the prior quarter while revenue increased, resulting in a lower free cash flow margin. The filing text emphasizes a focus on cash flow generation and working capital management.
The sequential decline in operating cash flow is a factor to watch in relation to the company's stated emphasis on cash flow generation.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than the prior quarter, leading to a lower free cash flow margin despite higher revenue. Capital expenditure was higher than the prior quarter but lower than a year ago.
Compared to the prior quarter, free cash flow was lower due to a decline in operating cash flow and an increase in capital expenditure. Compared to the same quarter last year, free cash flow was higher, supported by higher operating cash flow and lower capital expenditure.
Monitor the consistency of operating cash flow generation relative to revenue growth.