Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow decreased significantly compared to both the prior quarter and the same quarter last year. Free cash flow turned negative, resulting in a negative margin.
- Revenue was lower, operating cash flow was negative, and capital expenditure remained substantial. As a result, free cash flow was negative, with a negative margin.
- Compared to the prior quarter, all metrics weakened: revenue, operating cash flow, free cash flow, and margin declined. The declines were more pronounced when compared to the same quarter one year earlier.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$10.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$2.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$1.2B
Cash generated by operations before capital spending.
CapEx
$914.0M
Capital spending and related asset purchases.
FCF margin
-16.3%
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 | $22.6B | $6.0B | $841.0M | $5.1B | 22.7% |
| 2022-12-31 | $25.1B | $8.6B | $1.0B | $7.6B | 30.2% |
| 2023-04-02 | $18.5B | $1.2B | $1.1B | $73.0M | 0.4% |
| 2023-07-02 | $13.0B | -$1.2B | $914.0M | -$2.1B | -16.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -91.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$62.7B | 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 shifted from positive in the prior quarter to negative in the current quarter, while capital expenditure was lower than the prior quarter but higher than the year-ago quarter.
This drove free cash flow to a negative position and a negative margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower, operating cash flow was negative, and capital expenditure remained substantial. As a result, free cash flow was negative, with a negative margin.
Compared to the prior quarter, all metrics weakened: revenue, operating cash flow, free cash flow, and margin declined. The declines were more pronounced when compared to the same quarter one year earlier.
Monitor the outcome of the proposed divestiture of the early-stage rare disease gene therapy portfolio, as it may affect future cash flows.