Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow declined compared to both the prior quarter and the same quarter a year ago, primarily due to a lower operating cash flow. The company’s liquidity position remained strong, as noted in its filing, though cash conversion weakened notably.
- Operating cash flow decreased while capital expenditure rose slightly, leading to a lower free cash flow and a narrower free cash flow margin. Revenue was unchanged from the preceding quarter but lower than a year earlier.
- Revenue was stable compared to the previous quarter but lower than a year ago. Free cash flow and its margin were lower than both the preceding quarter and the same quarter last year, reflecting weakened cash generation.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$6.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$675.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.2B
Cash generated by operations before capital spending.
CapEx
$531.7M
Capital spending and related asset purchases.
FCF margin
7.8%
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 |
|---|---|---|---|---|---|
| 2022-07-02 | $11.8B | $2.3B | $521.1M | $1.7B | 14.8% |
| 2022-10-01 | $10.5B | $2.8B | $461.3M | $2.3B | 22.3% |
| 2022-12-31 | $8.7B | $2.5B | $517.9M | $2.0B | 23.1% |
| 2023-04-01 | $8.7B | $1.2B | $531.7M | $675.4M | 7.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 59.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.1% | 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 Decline
Operating cash flow decreased sharply from both the prior quarter and the year-ago quarter, while revenue remained relatively stable. This was the strongest observable factor behind the lower free cash flow and margin.
The decline in operating cash flow directly reduced free cash flow and compressed the free cash flow margin for the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow decreased while capital expenditure rose slightly, leading to a lower free cash flow and a narrower free cash flow margin. Revenue was unchanged from the preceding quarter but lower than a year earlier.
Revenue was stable compared to the previous quarter but lower than a year ago. Free cash flow and its margin were lower than both the preceding quarter and the same quarter last year, reflecting weakened cash generation.
Monitor the level of operating cash flow, as it dropped significantly this quarter and is the primary driver of the decline in free cash flow.