Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin improved significantly compared to both the prior quarter and the same quarter last year. Operating cash flow rose while revenue was mixed relative to the two comparison periods.
- Revenue was higher than the prior quarter but lower than a year ago. Operating cash flow increased more than proportionally, leading to a higher free cash flow and an improved free cash flow margin, despite a modest rise in capital expenditure.
- Compared to the prior quarter, revenue, operating cash flow, free cash flow, and margin all improved. Versus the same quarter last year, revenue was lower but operating cash flow, free cash flow, and margin were higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$6.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$3.5B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.9B
Cash generated by operations before capital spending.
CapEx
$385.0M
Capital spending and related asset purchases.
FCF margin
13.9%
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 |
|---|---|---|---|---|---|
| 2022-10-28 | $23.5B | $2.1B | $403.0M | $1.7B | 7.3% |
| 2023-02-03 | $22.4B | $451.0M | $739.0M | -$288.0M | -1.3% |
| 2023-05-05 | $22.3B | $2.1B | $380.0M | $1.7B | 7.7% |
| 2023-08-04 | $25.0B | $3.9B | $385.0M | $3.5B | 13.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 130.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.5% | 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 strength
Operating cash flow rose substantially from both the prior quarter and the year-ago quarter, outpacing the change in revenue. This drove a higher free cash flow and an expanded free cash flow margin.
The company generated more cash from operations relative to its revenue, improving cash conversion efficiency.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than the prior quarter but lower than a year ago. Operating cash flow increased more than proportionally, leading to a higher free cash flow and an improved free cash flow margin, despite a modest rise in capital expenditure.
Compared to the prior quarter, revenue, operating cash flow, free cash flow, and margin all improved. Versus the same quarter last year, revenue was lower but operating cash flow, free cash flow, and margin were higher.
The filing notes a one-week shift in the fiscal calendar relative to the prior year, which may affect period-over-period comparisons.