Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion strengthened substantially versus the prior quarter and year-ago periods, driven by higher revenue and operating cash flow. Free cash flow margin declined sequentially but remained robust, while capital expenditure decreased from both comparable periods.
- Revenue and operating cash flow increased, supporting a higher free cash flow amount. The free cash flow margin, though lower than the prior quarter, improved markedly compared to the same quarter one year earlier when it was negative.
- Compared with the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, while capital expenditure was slightly lower. Versus the same quarter one year earlier, all metrics improved, with operating cash flow and free cash flow turning from lower to higher and capital expenditure decreasing.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$17.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$7.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$7.3B
Cash generated by operations before capital spending.
CapEx
$278.0M
Capital spending and related asset purchases.
FCF margin
38.9%
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 |
|---|---|---|---|---|---|
| 2023-01-29 | $6.1B | $2.2B | $509.0M | $1.7B | 28.7% |
| 2023-04-30 | $7.2B | $2.9B | $248.0M | $2.7B | 37.0% |
| 2023-07-30 | $13.5B | $6.3B | $289.0M | $6.1B | 44.9% |
| 2023-10-29 | $18.1B | $7.3B | $278.0M | $7.1B | 38.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 76.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.2B | 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 growth
Operating cash flow increased compared to both the prior quarter and the same quarter last year, with the year-ago period showing a particularly large improvement. The filing notes that operating cash flow for the first nine months rose due to revenue growth, partially offset by higher accounts receivable and taxes.
This was the strongest observable driver, as it directly lifted free cash flow despite a lower capital expenditure contribution.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue and operating cash flow increased, supporting a higher free cash flow amount. The free cash flow margin, though lower than the prior quarter, improved markedly compared to the same quarter one year earlier when it was negative.
Compared with the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, while capital expenditure was slightly lower. Versus the same quarter one year earlier, all metrics improved, with operating cash flow and free cash flow turning from lower to higher and capital expenditure decreasing.
Monitor the trajectory of free cash flow margin as it decreased sequentially despite higher absolute free cash flow.