Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin weakened sharply as operating cash flow declined while revenue remained relatively stable. Capital expenditure was lower than the prior quarter but higher than the same quarter last year.
- Revenue was lower than the preceding quarter but higher than the year-ago quarter. Operating cash flow decreased compared to both periods, resulting in a free cash flow margin that was lower than both the prior quarter and the same quarter one year earlier.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all lower, and the free cash flow margin weakened. Versus the same quarter one year earlier, revenue was higher but operating cash flow and free cash flow were lower, and the margin also weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$140.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$294.4M
Cash generated by operations before capital spending.
CapEx
$154.4M
Capital spending and related asset purchases.
FCF margin
5.6%
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 |
|---|---|---|---|---|---|
| 2022-10-02 | $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% |
| 2023-07-02 | $2.5B | $294.4M | $154.4M | $140.0M | 5.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 34.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.2% | 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.
Weakened cash conversion
Operating cash flow declined significantly from both the prior quarter and the year-ago quarter, while revenue was only slightly higher year over year. This drove a sharp reduction in free cash flow and free cash flow margin.
The lower cash generation may constrain the company's ability to fund investments or shareholder returns without relying on external financing.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the preceding quarter but higher than the year-ago quarter. Operating cash flow decreased compared to both periods, resulting in a free cash flow margin that was lower than both the prior quarter and the same quarter one year earlier.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all lower, and the free cash flow margin weakened. Versus the same quarter one year earlier, revenue was higher but operating cash flow and free cash flow were lower, and the margin also weakened.
Monitor the impact of the recently completed acquisition of manufacturing assets on future capital expenditure and cash flow trends.