Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased while free cash flow margin weakened. Operating cash flow was lower despite higher revenue, and capital expenditure declined.
- Revenue was higher than both the prior quarter and the year-ago quarter, but operating cash flow was lower, resulting in a lower free cash flow. The free cash flow margin weakened compared with both periods.
- Compared with the immediately preceding quarter, revenue was higher but operating cash flow, free cash flow, and free cash flow margin were all lower. Capital expenditure was also lower. Versus the same quarter one year earlier, revenue was higher, operating cash flow and free cash flow were lower, and free cash flow margin weakened; capital expenditure was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$16.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.4B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.3B
Cash generated by operations before capital spending.
CapEx
$863.0M
Capital spending and related asset purchases.
FCF margin
11.5%
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 |
|---|---|---|---|---|---|
| 2022-07-03 | $27.6B | $5.6B | $863.0M | $4.7B | 17.1% |
| 2022-10-02 | $12.6B | $6.3B | $952.0M | $5.3B | 42.3% |
| 2023-01-01 | $19.9B | $5.3B | $1.6B | $3.8B | 18.9% |
| 2023-04-02 | $20.9B | $3.3B | $863.0M | $2.4B | 11.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -3520.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.1% | 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 Pressure
Revenue grew but operating cash flow declined from both the prior quarter and the year-ago quarter. The filing notes that cash from operations was affected by a net loss and an increase in accounts receivable, partially offset by non-cash expenses.
This was the strongest observable factor reducing free cash flow relative to both comparison periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than both the prior quarter and the year-ago quarter, but operating cash flow was lower, resulting in a lower free cash flow. The free cash flow margin weakened compared with both periods.
Compared with the immediately preceding quarter, revenue was higher but operating cash flow, free cash flow, and free cash flow margin were all lower. Capital expenditure was also lower. Versus the same quarter one year earlier, revenue was higher, operating cash flow and free cash flow were lower, and free cash flow margin weakened; capital expenditure was higher.
Monitor the relationship between revenue growth and operating cash flow, as the latter declined despite higher revenue.