Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin weakened compared to both the prior quarter and the same quarter last year. Revenue was higher, but operating cash flow declined, resulting in lower cash conversion.
- Revenue increased while operating cash flow decreased, leading to a lower free cash flow margin. Capital expenditure was higher than both comparison periods, further reducing free cash flow.
- Compared to the prior quarter, revenue was higher but operating cash flow, free cash flow, and margin all declined. Versus the same quarter last year, revenue was higher while operating cash flow, free cash flow, and margin were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$6.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$771.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.1B
Cash generated by operations before capital spending.
CapEx
$329.0M
Capital spending and related asset purchases.
FCF margin
4.6%
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 |
|---|---|---|---|---|---|
| 2022-09-25 | $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% |
| 2023-06-25 | $16.7B | $1.1B | $329.0M | $771.0M | 4.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 45.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$13.9B | 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 Decline
Operating cash flow was lower than both the prior quarter and the year-ago quarter, while revenue was higher. This divergence is the strongest observable driver of the weakened free cash flow.
The lower operating cash flow directly reduced free cash flow and margin despite higher revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased while operating cash flow decreased, leading to a lower free cash flow margin. Capital expenditure was higher than both comparison periods, further reducing free cash flow.
Compared to the prior quarter, revenue was higher but operating cash flow, free cash flow, and margin all declined. Versus the same quarter last year, revenue was higher while operating cash flow, free cash flow, and margin were lower.
Monitor the trend in operating cash flow, as it declined despite higher revenue.