Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow improved sharply from the prior quarter, lifting free cash flow and margin. Revenue was slightly higher than both the prior quarter and the same quarter last year.
- Revenue was slightly higher than the prior quarter, while operating cash flow increased substantially, resulting in a much higher free cash flow and free cash flow margin. Capital expenditure was slightly higher than both comparison periods.
- Compared to the prior quarter, operating cash flow, free cash flow, and free cash flow margin were all substantially higher. Versus the same quarter last year, operating cash flow and free cash flow were slightly higher, while free cash flow margin was slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$804.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$745.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$795.0M
Cash generated by operations before capital spending.
CapEx
$50.0M
Capital spending and related asset purchases.
FCF margin
19.1%
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 |
|---|---|---|---|---|---|
| 2022-12-30 | $3.7B | $125.0M | $53.0M | $72.0M | 2.0% |
| 2023-03-31 | $3.7B | -$98.0M | $39.0M | -$137.0M | -3.7% |
| 2023-06-30 | $3.8B | $164.0M | $40.0M | $124.0M | 3.3% |
| 2023-09-29 | $3.9B | $795.0M | $50.0M | $745.0M | 19.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -186.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.3% | 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 Surge
Operating cash flow was substantially higher than the prior quarter and slightly higher than the same quarter last year, driving a large increase in free cash flow.
Free cash flow margin improved sharply from the prior quarter and remained close to the year-ago level.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly higher than the prior quarter, while operating cash flow increased substantially, resulting in a much higher free cash flow and free cash flow margin. Capital expenditure was slightly higher than both comparison periods.
Compared to the prior quarter, operating cash flow, free cash flow, and free cash flow margin were all substantially higher. Versus the same quarter last year, operating cash flow and free cash flow were slightly higher, while free cash flow margin was slightly lower.
Monitor whether operating cash flow can sustain the elevated level relative to revenue seen this quarter.