Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sequentially driven by higher operating cash flow, though the margin remained lower than the prior-year quarter. Capital expenditure increased compared to both the prior quarter and the same quarter last year.
- Revenue was higher sequentially and lower year-over-year. Operating cash flow improved from the prior quarter but was below the year-ago level. With capital expenditure increasing, free cash flow and free cash flow margin strengthened versus the preceding quarter but weakened compared to the same quarter one year earlier.
- Compared to the immediately preceding quarter, free cash flow margin improved. Compared to the same quarter one year earlier, free cash flow margin was lower; operating cash flow and free cash flow were also lower, while capital expenditure was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$14.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$3.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$4.2B
Cash generated by operations before capital spending.
CapEx
$1.1B
Capital spending and related asset purchases.
FCF margin
14.2%
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 | $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% |
| 2023-07-02 | $21.5B | $4.2B | $1.1B | $3.1B | 14.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 59.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.2% | 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 increased from the prior quarter, driving free cash flow higher despite a capital expenditure increase. This sequential gain was the clearest positive movement among supplied metrics.
Free cash flow margin rose sequentially, reflecting stronger cash generation relative to revenue in the current quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher sequentially and lower year-over-year. Operating cash flow improved from the prior quarter but was below the year-ago level. With capital expenditure increasing, free cash flow and free cash flow margin strengthened versus the preceding quarter but weakened compared to the same quarter one year earlier.
Compared to the immediately preceding quarter, free cash flow margin improved. Compared to the same quarter one year earlier, free cash flow margin was lower; operating cash flow and free cash flow were also lower, while capital expenditure was higher.
Monitor the trajectory of operating cash flow relative to revenue conversion, as it improved sequentially but remained below the year-ago level.