Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin improved significantly in the current quarter compared to both the prior quarter and the same quarter one year earlier. The increase was driven by a substantial rise in operating cash flow, while capital expenditure remained relatively stable.
- Revenue was stable compared to the prior quarter and higher than the same quarter one year earlier. Operating cash flow increased sharply, resulting in positive free cash flow and a higher margin, with capital expenditure slightly above both comparison periods.
- Compared to the prior quarter, free cash flow turned from negative to positive, driven by a large increase in operating cash flow. Versus the same quarter one year earlier, free cash flow and margin were higher, with operating cash flow higher and capital expenditure slightly higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$532.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$237.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$274.0M
Cash generated by operations before capital spending.
CapEx
$37.0M
Capital spending and related asset purchases.
FCF margin
7.6%
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 |
|---|---|---|---|---|---|
| 2022-09-24 | $3.1B | $98.0M | $24.0M | $74.0M | 2.4% |
| 2022-12-31 | $3.4B | $254.0M | $29.0M | $225.0M | 6.7% |
| 2023-04-01 | $3.1B | $27.0M | $31.0M | -$4.0M | -0.1% |
| 2023-07-01 | $3.1B | $274.0M | $37.0M | $237.0M | 7.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 169.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.2% | 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 Improvement
Operating cash flow rose sharply from the prior quarter and was higher than the same quarter one year earlier, enabling strong free cash flow generation.
This improvement was the primary factor behind the positive free cash flow margin in the current quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable compared to the prior quarter and higher than the same quarter one year earlier. Operating cash flow increased sharply, resulting in positive free cash flow and a higher margin, with capital expenditure slightly above both comparison periods.
Compared to the prior quarter, free cash flow turned from negative to positive, driven by a large increase in operating cash flow. Versus the same quarter one year earlier, free cash flow and margin were higher, with operating cash flow higher and capital expenditure slightly higher.
Monitor working capital components such as accounts receivable and inventory, as the filing notes that working capital requirements are influenced by sales growth and inventory forward buy-in opportunities.