Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to the immediately preceding quarter and the same quarter one year earlier. Free cash flow improved from the prior quarter but was lower than the year-ago period.
- Operating cash flow increased relative to the prior quarter while capital expenditure remained similar, resulting in higher free cash flow and an improved free cash flow margin. Compared to the year-ago quarter, operating cash flow was lower and capital expenditure was lower, leading to a lower free cash flow and margin.
- Compared to the prior quarter, revenue was stable, operating cash flow was higher, capital expenditure was similar, and free cash flow and margin improved. Compared to the same quarter last year, revenue was stable, operating cash flow was lower, capital expenditure was lower, and free cash flow and margin weakened.
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
$788.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$988.0M
Cash generated by operations before capital spending.
CapEx
$200.0M
Capital spending and related asset purchases.
FCF margin
22.9%
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 |
|---|---|---|---|---|---|
| 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% |
| 2023-10-01 | $3.4B | $988.0M | $200.0M | $788.0M | 22.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 100.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.8% | 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 improvement
Operating cash flow increased from the prior quarter, while capital expenditure remained nearly unchanged, leading to a higher free cash flow and an improved free cash flow margin.
This strengthened the company's cash generation efficiency compared to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow increased relative to the prior quarter while capital expenditure remained similar, resulting in higher free cash flow and an improved free cash flow margin. Compared to the year-ago quarter, operating cash flow was lower and capital expenditure was lower, leading to a lower free cash flow and margin.
Compared to the prior quarter, revenue was stable, operating cash flow was higher, capital expenditure was similar, and free cash flow and margin improved. Compared to the same quarter last year, revenue was stable, operating cash flow was lower, capital expenditure was lower, and free cash flow and margin weakened.
The relationship between capital expenditure and operating cash flow, given the year-over-year decline in both metrics.