Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the current quarter, free cash flow improved from the prior quarter but weakened compared to the same quarter last year. The free cash flow margin was higher than the previous quarter but lower than the year-ago period.
- Revenue was higher than both the prior quarter and the year-ago quarter. Operating cash flow improved from the prior quarter but was lower than the year-ago quarter. Capital expenditure was slightly lower than the prior quarter but higher than the year-ago quarter. As a result, free cash flow and margin increased sequentially but declined year over year.
- Free cash flow and margin improved from the immediate preceding quarter, driven by higher operating cash flow and stable capital expenditure. Compared to the same quarter one year earlier, free cash flow and margin weakened, as operating cash flow was lower and capital expenditure was higher.
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
$343.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.2B
Cash generated by operations before capital spending.
CapEx
$817.0M
Capital spending and related asset purchases.
FCF margin
1.0%
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 |
|---|---|---|---|---|---|
| 2022-01-29 | $33.0B | $1.4B | $606.0M | $793.0M | 2.4% |
| 2022-08-13 | $34.6B | $1.3B | $685.0M | $640.0M | 1.8% |
| 2022-11-05 | $34.2B | $911.0M | $831.0M | $80.0M | 0.2% |
| 2023-01-28 | $34.8B | $1.2B | $817.0M | $343.0M | 1.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 76.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$10.3B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Improved operating cash flow
Operating cash flow increased from the prior quarter, while capital expenditure remained relatively stable, leading to a higher free cash flow. This sequential improvement was the primary observable factor.
The quarter’s free cash flow margin strengthened sequentially due to the higher operating cash flow.
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. Operating cash flow improved from the prior quarter but was lower than the year-ago quarter. Capital expenditure was slightly lower than the prior quarter but higher than the year-ago quarter. As a result, free cash flow and margin increased sequentially but declined year over year.
Free cash flow and margin improved from the immediate preceding quarter, driven by higher operating cash flow and stable capital expenditure. Compared to the same quarter one year earlier, free cash flow and margin weakened, as operating cash flow was lower and capital expenditure was higher.
Monitor the trajectory of operating cash flow, as the filing indicates that changes in operating assets and liabilities used more cash in the current fiscal year compared to the prior year.