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 weakened from the prior quarter but was stable relative to the year-ago period.
- Operating cash flow was lower than the prior quarter but higher than a year ago. Capital expenditure increased compared to both periods, resulting in free cash flow that was lower than the prior quarter but higher than the year-ago quarter.
- Compared to the immediately preceding quarter, revenue was higher while free cash flow margin was lower. Compared to the same quarter one year earlier, revenue and free cash flow were higher, with margin remaining stable.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$579.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$755.4M
Cash generated by operations before capital spending.
CapEx
$176.1M
Capital spending and related asset purchases.
FCF margin
19.4%
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 |
|---|---|---|---|---|---|
| 2022-07-03 | $2.4B | $457.3M | $99.9M | $357.4M | 15.1% |
| 2022-10-02 | $2.7B | $446.4M | $119.0M | $327.4M | 12.0% |
| 2022-12-31 | $2.7B | $767.6M | $159.5M | $608.2M | 22.9% |
| 2023-04-02 | $3.0B | $755.4M | $176.1M | $579.3M | 19.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 98.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.9% | 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.
Revenue Growth
Revenue was higher compared to both the prior quarter and the same quarter last year, providing a larger base for cash generation.
This contributed to higher free cash flow compared to the year-ago period, despite increased capital spending.
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 but higher than a year ago. Capital expenditure increased compared to both periods, resulting in free cash flow that was lower than the prior quarter but higher than the year-ago quarter.
Compared to the immediately preceding quarter, revenue was higher while free cash flow margin was lower. Compared to the same quarter one year earlier, revenue and free cash flow were higher, with margin remaining stable.
Monitor the impact of the post-quarter acquisition of additional manufacturing capacity on future capital expenditure and cash flow.