Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin improved versus both the prior quarter and the same quarter last year, driven by stronger operating cash flow. Revenue was slightly lower year over year but the cash conversion efficiency increased notably.
- Operating cash flow increased relative to revenue compared with both the preceding quarter and the year-ago quarter, while capital expenditure decreased sequentially and remained broadly stable year over year, resulting in higher free cash flow and margin.
- Compared with the prior quarter, revenue and operating cash flow both rose, capital expenditure declined, and free cash flow and margin improved. Versus the same period one year earlier, revenue was slightly lower but operating cash flow was substantially higher, leading to a markedly stronger free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$16.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$5.8B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$6.6B
Cash generated by operations before capital spending.
CapEx
$792.0M
Capital spending and related asset purchases.
FCF margin
13.5%
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 |
|---|---|---|---|---|---|
| 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% |
| 2023-07-30 | $42.9B | $6.6B | $792.0M | $5.8B | 13.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 124.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.8% | 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 meaningfully both sequentially and year over year, outpacing the change in revenue and capital expenditure. This was the primary observable factor behind the improvement in free cash flow and margin.
Higher operating cash flow directly lifted free cash flow and expanded the margin even as revenue was slightly below the prior year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow increased relative to revenue compared with both the preceding quarter and the year-ago quarter, while capital expenditure decreased sequentially and remained broadly stable year over year, resulting in higher free cash flow and margin.
Compared with the prior quarter, revenue and operating cash flow both rose, capital expenditure declined, and free cash flow and margin improved. Versus the same period one year earlier, revenue was slightly lower but operating cash flow was substantially higher, leading to a markedly stronger free cash flow margin.
Monitor the trend in capital expenditure, which declined sequentially but remained higher than the year-ago level.