Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
This quarter's free cash flow margin weakened compared to both the preceding quarter and the same quarter one year earlier. The decline was driven by a larger reduction in operating cash flow relative to revenue, while capital expenditure increased.
- Revenue was lower than both comparison periods, and operating cash flow decreased more than proportionally, resulting in a free cash flow margin that was lower than both prior periods.
- Compared to the immediately preceding quarter, revenue and operating cash flow were lower, and free cash flow margin declined. Compared to the same quarter one year earlier, revenue was lower, operating cash flow was lower, and free cash flow margin was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$485.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.1B
Cash generated by operations before capital spending.
CapEx
$579.0M
Capital spending and related asset purchases.
FCF margin
2.4%
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 |
|---|---|---|---|---|---|
| 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% |
| 2023-11-03 | $20.5B | $1.1B | $579.0M | $485.0M | 2.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 27.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.8% | 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 Decline
Revenue declined in the current quarter relative to both prior periods, and operating cash flow declined more sharply, compressing the free cash flow margin.
The lower operating cash flow was the strongest observable factor behind the weakened free cash flow generation.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than both comparison periods, and operating cash flow decreased more than proportionally, resulting in a free cash flow margin that was lower than both prior periods.
Compared to the immediately preceding quarter, revenue and operating cash flow were lower, and free cash flow margin declined. Compared to the same quarter one year earlier, revenue was lower, operating cash flow was lower, and free cash flow margin was lower.
The relationship between capital expenditure and operating cash flow, as capital expenditure rose while operating cash flow fell.