Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin improved sharply versus both the prior quarter and the same quarter last year, driven by higher operating cash flow despite lower revenue. Capital expenditure declined compared to both periods, further supporting free cash flow.
- Revenue was lower than the prior quarter but slightly below the year-ago quarter, while operating cash flow rose significantly versus both periods. The combination of higher operating cash flow and lower capital expenditure resulted in a substantially higher free cash flow and free cash flow margin.
- Compared to the immediately preceding quarter, revenue was lower but operating cash flow was higher, capital expenditure was lower, and free cash flow and free cash flow margin were higher. Versus the same quarter one year earlier, revenue was slightly lower, while operating cash flow, free cash flow, and free cash flow margin were all higher, with capital expenditure also lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.6B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.7B
Cash generated by operations before capital spending.
CapEx
$119.5M
Capital spending and related asset purchases.
FCF margin
41.5%
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 | $4.6B | $443.9M | $125.7M | $318.2M | 6.9% |
| 2022-09-25 | $5.1B | $1.2B | $140.1M | $1.0B | 20.7% |
| 2022-12-25 | $5.3B | $1.1B | $163.4M | $976.8M | 18.5% |
| 2023-03-26 | $3.9B | $1.7B | $119.5M | $1.6B | 41.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 197.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.1% | 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 was higher than both the prior quarter and the year-ago quarter, despite lower revenue. This was the strongest observable driver of the improved free cash flow and margin.
Higher operating cash flow directly lifted free cash flow and margin, even with revenue lower.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter but slightly below the year-ago quarter, while operating cash flow rose significantly versus both periods. The combination of higher operating cash flow and lower capital expenditure resulted in a substantially higher free cash flow and free cash flow margin.
Compared to the immediately preceding quarter, revenue was lower but operating cash flow was higher, capital expenditure was lower, and free cash flow and free cash flow margin were higher. Versus the same quarter one year earlier, revenue was slightly lower, while operating cash flow, free cash flow, and free cash flow margin were all higher, with capital expenditure also lower.
Monitor the trend in revenue, as it declined from both the prior quarter and the year-ago quarter while cash conversion improved.