Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both improved compared to the prior quarter and the same quarter last year, leading to higher free cash flow and an improved free cash flow margin. Capital expenditure increased relative to the year-ago quarter but was nearly flat sequentially.
- Operating cash flow as a proportion of revenue strengthened versus both the prior quarter and the year-ago quarter, supporting a higher free cash flow margin after accounting for capital expenditure.
- Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all improved. Versus the same quarter one year earlier, revenue was lower but operating cash flow, free cash flow, and free cash flow margin were all higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$13.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$4.7B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$5.6B
Cash generated by operations before capital spending.
CapEx
$905.0M
Capital spending and related asset purchases.
FCF margin
12.6%
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 |
|---|---|---|---|---|---|
| 2022-07-31 | $43.8B | $3.4B | $743.0M | $2.6B | 6.1% |
| 2022-10-30 | $38.9B | $2.8B | $769.0M | $2.1B | 5.3% |
| 2023-01-29 | $35.8B | $4.6B | $903.0M | $3.7B | 10.3% |
| 2023-04-30 | $37.3B | $5.6B | $905.0M | $4.7B | 12.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 121.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.4% | 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 increased both sequentially and year-over-year, outpacing the change in revenue and contributing to a higher free cash flow margin.
The improvement in operating cash flow was the strongest observable driver of the quarter's free cash flow performance.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue strengthened versus both the prior quarter and the year-ago quarter, supporting a higher free cash flow margin after accounting for capital expenditure.
Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all improved. Versus the same quarter one year earlier, revenue was lower but operating cash flow, free cash flow, and free cash flow margin were all higher.
Monitor the trajectory of capital expenditure relative to operating cash flow, as it remained stable sequentially but increased from the year-ago level.