Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow declined from both the prior quarter and the same quarter last year, driven by a lower operating cash flow despite a reduction in capital expenditure. The company's filing notes a strong financial position and liquidity, but the free cash flow margin weakened compared to both periods.
- Revenue was higher than a year ago but lower than the previous quarter. Operating cash flow decreased relative to both periods, while capital expenditure also declined. The resulting free cash flow and margin were lower than both comparisons.
- Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and margin all decreased. Versus the same quarter one year earlier, revenue increased, but operating cash flow, free cash flow, and margin were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$521.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$875.0M
Cash generated by operations before capital spending.
CapEx
$354.0M
Capital spending and related asset purchases.
FCF margin
6.8%
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 | $7.6B | $922.0M | $323.0M | $599.0M | 7.9% |
| 2023-01-27 | $7.7B | $1.6B | $332.0M | $1.2B | 16.1% |
| 2023-04-28 | $8.5B | $2.5B | $378.0M | $2.1B | 24.4% |
| 2023-07-28 | $7.7B | $875.0M | $354.0M | $521.0M | 6.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 65.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.6% | 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.
Decline in Operating Cash Flow
Operating cash flow was lower than both the prior quarter and the same quarter last year, despite revenue being higher than a year ago. This drove a reduction in free cash flow and margin.
Free cash flow margin weakened significantly compared to both prior periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than a year ago but lower than the previous quarter. Operating cash flow decreased relative to both periods, while capital expenditure also declined. The resulting free cash flow and margin were lower than both comparisons.
Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and margin all decreased. Versus the same quarter one year earlier, revenue increased, but operating cash flow, free cash flow, and margin were lower.
Monitor the trajectory of operating cash flow, as it declined from both prior periods and is the primary factor behind the lower free cash flow.