Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both improved compared to the prior quarter, while free cash flow margin strengthened. Versus the same quarter last year, revenue was lower but free cash flow and its margin were higher.
- Operating cash flow as a share of revenue was higher than both the prior quarter and the year-ago quarter, supporting a free cash flow margin that improved sequentially and year-over-year. Capital expenditure was higher than the prior quarter but lower than the year-ago quarter.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and free cash flow margin improved. Compared to the same quarter one year earlier, revenue was lower, but operating cash flow, free cash flow, and free cash flow margin were all higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.3B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.5B
Cash generated by operations before capital spending.
CapEx
$115.3M
Capital spending and related asset purchases.
FCF margin
35.6%
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 |
|---|---|---|---|---|---|
| 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% |
| 2023-12-24 | $3.8B | $1.5B | $115.3M | $1.3B | 35.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 140.3% | 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, driving a sequential and year-over-year improvement in free cash flow and its margin. This occurred even though revenue was lower than the year-ago period.
The higher operating cash flow was the strongest observable driver of the improved free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a share of revenue was higher than both the prior quarter and the year-ago quarter, supporting a free cash flow margin that improved sequentially and year-over-year. Capital expenditure was higher than the prior quarter but lower than the year-ago quarter.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and free cash flow margin improved. Compared to the same quarter one year earlier, revenue was lower, but operating cash flow, free cash flow, and free cash flow margin were all higher.
Monitor the trend in capital expenditure relative to operating cash flow, as it increased sequentially while operating cash flow also rose.