Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the current quarter, free cash flow margin improved compared to the same quarter last year but weakened relative to the preceding quarter. Operating cash flow declined while capital expenditure also decreased, resulting in lower free cash flow than both comparison periods.
- Revenue increased from the prior quarter but was lower than the same quarter last year. Operating cash flow, however, fell compared to both periods, leading to a free cash flow margin that was higher than a year ago but lower than the previous quarter.
- Compared to the preceding quarter, revenue improved but operating cash flow and free cash flow both weakened. Versus the same quarter last year, revenue was lower, but free cash flow margin improved as capital expenditure declined more sharply.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$874.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$951.2M
Cash generated by operations before capital spending.
CapEx
$77.0M
Capital spending and related asset purchases.
FCF margin
25.1%
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 |
|---|---|---|---|---|---|
| 2022-12-25 | $5.3B | $1.1B | $163.4M | $976.8M | 18.5% |
| 2023-03-26 | $3.9B | $1.7B | $119.5M | $1.6B | 41.5% |
| 2023-06-25 | $3.2B | $1.1B | $78.7M | $1.0B | 32.6% |
| 2023-09-24 | $3.5B | $951.2M | $77.0M | $874.2M | 25.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 98.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.2% | 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
Operating cash flow was lower than both the prior quarter and the same quarter last year, despite revenue improvement from the prior quarter. This decline is the most prominent factor affecting free cash flow.
The lower operating cash flow constrained free cash flow generation, even with reduced capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased from the prior quarter but was lower than the same quarter last year. Operating cash flow, however, fell compared to both periods, leading to a free cash flow margin that was higher than a year ago but lower than the previous quarter.
Compared to the preceding quarter, revenue improved but operating cash flow and free cash flow both weakened. Versus the same quarter last year, revenue was lower, but free cash flow margin improved as capital expenditure declined more sharply.
Monitor changes in deferred profit, which was a significant use of cash in the current quarter.