Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow and free cash flow both improved versus the prior quarter and the year-ago quarter. Free cash flow margin strengthened sequentially and year-over-year.
- Revenue was stable, while operating cash flow increased, contributing to a higher free cash flow. The free cash flow margin improved, reflecting a larger share of revenue converted into free cash flow. Capital expenditure was lower than both the prior quarter and the year-ago quarter.
- Compared to the immediately preceding quarter, free cash flow was higher and the margin improved. Compared to the same quarter one year earlier, free cash flow was higher and the margin also improved. Revenue was slightly higher than the year-ago quarter but unchanged from the prior quarter.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$962.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.1B
Cash generated by operations before capital spending.
CapEx
$175.0M
Capital spending and related asset purchases.
FCF margin
28.1%
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 |
|---|---|---|---|---|---|
| 2023-04-02 | $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% |
| 2023-12-31 | $3.4B | $1.1B | $175.0M | $962.0M | 28.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 138.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$7.4B | 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
Higher operating cash flow, alongside stable revenue and lower capital expenditure, drove the increase in free cash flow and the improvement in margin.
Free cash flow and margin both reached their highest levels among the three reported periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable, while operating cash flow increased, contributing to a higher free cash flow. The free cash flow margin improved, reflecting a larger share of revenue converted into free cash flow. Capital expenditure was lower than both the prior quarter and the year-ago quarter.
Compared to the immediately preceding quarter, free cash flow was higher and the margin improved. Compared to the same quarter one year earlier, free cash flow was higher and the margin also improved. Revenue was slightly higher than the year-ago quarter but unchanged from the prior quarter.
Monitor the trend in capital expenditure, which decreased in the current quarter and may affect future cash conversion.