Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable versus the prior year, while operating cash flow and free cash flow improved sequentially. The free cash flow margin strengthened compared to the preceding quarter and was roughly level with the year-ago period.
- Operating cash flow as a proportion of revenue increased from the prior quarter, supporting a higher free cash flow margin. Capital expenditure was lower than both the preceding quarter and the year-ago quarter, contributing to the sequential improvement in free cash flow.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow all increased, while capital expenditure decreased. Versus the same quarter one year earlier, revenue was essentially unchanged, operating cash flow was lower, and free cash flow was slightly higher, with capital expenditure also lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$555.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$756.0M
Cash generated by operations before capital spending.
CapEx
$201.0M
Capital spending and related asset purchases.
FCF margin
16.8%
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 |
|---|---|---|---|---|---|
| 2022-10-02 | $3.4B | $1.1B | $282.0M | $862.0M | 25.0% |
| 2022-12-31 | $3.3B | $1.1B | $233.0M | $843.0M | 25.5% |
| 2023-04-02 | $3.1B | $632.0M | $251.0M | $381.0M | 12.2% |
| 2023-07-02 | $3.3B | $756.0M | $201.0M | $555.0M | 16.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 80.4% | 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.
Sequential Free Cash Flow Growth
Free cash flow rose from the prior quarter, driven by higher operating cash flow and lower capital expenditure. The free cash flow margin improved accordingly.
This sequential strengthening in free cash flow and margin supports the company's liquidity position as noted in the filing.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue increased from the prior quarter, supporting a higher free cash flow margin. Capital expenditure was lower than both the preceding quarter and the year-ago quarter, contributing to the sequential improvement in free cash flow.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow all increased, while capital expenditure decreased. Versus the same quarter one year earlier, revenue was essentially unchanged, operating cash flow was lower, and free cash flow was slightly higher, with capital expenditure also lower.
Monitor whether operating cash flow can sustain its sequential improvement given the year-over-year decline.