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. Operating cash flow improved sharply from the prior quarter, matching the year-ago level, leading to a higher free cash flow and margin relative to the prior quarter.
- Cash conversion strengthened as operating cash flow increased relative to revenue, while capital expenditure remained modest, allowing free cash flow to grow and its margin to recover to the same level as a year ago after a decline in the prior quarter.
- Compared to the preceding quarter, revenue and operating cash flow were higher, capital expenditure was slightly higher, and free cash flow was substantially higher with an improved margin. Versus the same quarter one year earlier, revenue was higher, operating cash flow was stable, capital expenditure was lower, and free cash flow was modestly higher, maintaining the same margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.3B
Cash generated by operations before capital spending.
CapEx
$227.0M
Capital spending and related asset purchases.
FCF margin
10.3%
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 |
|---|---|---|---|---|---|
| 2022-12-31 | $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% |
| 2023-10-01 | $10.6B | $1.3B | $227.0M | $1.1B | 10.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 130.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$7.9B | 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 rebound
Operating cash flow increased sharply from the prior quarter, supported by higher revenue and improved cash conversion, as reflected in the margin recovery. The filing context highlights a strong emphasis on cash flow generation through cost control and working capital management, which underpins this performance.
This improvement substantially boosted free cash flow and the margin, providing greater financial flexibility.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Cash conversion strengthened as operating cash flow increased relative to revenue, while capital expenditure remained modest, allowing free cash flow to grow and its margin to recover to the same level as a year ago after a decline in the prior quarter.
Compared to the preceding quarter, revenue and operating cash flow were higher, capital expenditure was slightly higher, and free cash flow was substantially higher with an improved margin. Versus the same quarter one year earlier, revenue was higher, operating cash flow was stable, capital expenditure was lower, and free cash flow was modestly higher, maintaining the same margin.
Monitor the level of operating cash flow relative to revenue, given the company's stated focus on cash flow generation through cost control and working capital management.