Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin improved sequentially but declined compared to the same quarter last year. Operating cash flow rose from the prior quarter, while capital expenditure increased relative to the year-ago period.
- Revenue was lower than the preceding quarter but unchanged from a year earlier. Operating cash flow increased from the prior quarter, while capital expenditure was slightly higher, resulting in free cash flow that was higher than the prior quarter but lower than the year-ago quarter. The free cash flow margin improved from the prior quarter but weakened compared to the same quarter last year.
- Compared to the preceding quarter, free cash flow and margin improved, driven by higher operating cash flow. Compared to the same quarter one year earlier, free cash flow and margin declined, as capital expenditure increased and operating cash flow was slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$535.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$757.6M
Cash generated by operations before capital spending.
CapEx
$222.5M
Capital spending and related asset purchases.
FCF margin
20.1%
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 |
|---|---|---|---|---|---|
| 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% |
| 2023-10-01 | $3.0B | $515.7M | $218.1M | $297.6M | 9.8% |
| 2023-12-31 | $2.7B | $757.6M | $222.5M | $535.1M | 20.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 153.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 8.4% | 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.
Sequential cash conversion improvement
Operating cash flow rose from the preceding quarter, while capital expenditure remained relatively stable, leading to a higher free cash flow margin.
This supported a stronger free cash flow generation in the current quarter compared to the prior quarter.
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 unchanged from a year earlier. Operating cash flow increased from the prior quarter, while capital expenditure was slightly higher, resulting in free cash flow that was higher than the prior quarter but lower than the year-ago quarter. The free cash flow margin improved from the prior quarter but weakened compared to the same quarter last year.
Compared to the preceding quarter, free cash flow and margin improved, driven by higher operating cash flow. Compared to the same quarter one year earlier, free cash flow and margin declined, as capital expenditure increased and operating cash flow was slightly lower.
Monitor capital expenditure levels, which were higher than the prior year quarter.