Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to the same quarter last year, while operating cash flow and free cash flow both improved. The free cash flow margin strengthened relative to both the prior quarter and the year-ago period.
- Operating cash flow exceeded capital expenditure, resulting in positive free cash flow. The free cash flow margin improved as free cash flow grew faster than revenue.
- Compared to the prior quarter, revenue was lower but free cash flow was higher, leading to a stronger free cash flow margin. Versus the same quarter last year, revenue was slightly higher and free cash flow was higher, with an improved margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$6.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.3B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.6B
Cash generated by operations before capital spending.
CapEx
$294.0M
Capital spending and related asset purchases.
FCF margin
8.4%
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 |
|---|---|---|---|---|---|
| 2022-06-26 | $15.4B | $1.3B | $304.0M | $1.0B | 6.6% |
| 2022-09-25 | $16.6B | $3.1B | $405.0M | $2.7B | 16.5% |
| 2022-12-31 | $19.0B | $1.9B | $693.0M | $1.2B | 6.5% |
| 2023-03-26 | $15.1B | $1.6B | $294.0M | $1.3B | 8.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 75.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$13.2B | 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 Growth
Operating cash flow increased compared to both the prior quarter and the same quarter last year, supporting higher free cash flow.
The improvement in operating cash flow was the strongest observable driver of the higher free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow exceeded capital expenditure, resulting in positive free cash flow. The free cash flow margin improved as free cash flow grew faster than revenue.
Compared to the prior quarter, revenue was lower but free cash flow was higher, leading to a stronger free cash flow margin. Versus the same quarter last year, revenue was slightly higher and free cash flow was higher, with an improved margin.
Monitor capital expenditure, which decreased from the prior quarter but increased slightly from the year-ago quarter.