Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin improved strongly versus both the prior quarter and the same quarter last year, driven by higher operating cash flow and lower capital expenditure. Revenue was stable compared to the prior quarter but lower than a year ago.
- Operating cash flow rose significantly relative to revenue, boosting the free cash flow margin to a high level. Capital expenditure declined from both comparison periods, further supporting cash conversion.
- Compared to the prior quarter, revenue was slightly higher while operating cash flow and free cash flow improved substantially. Versus the same quarter a year ago, revenue was lower but free cash flow and margin strengthened markedly.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$9.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$3.8B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$4.1B
Cash generated by operations before capital spending.
CapEx
$293.0M
Capital spending and related asset purchases.
FCF margin
44.0%
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 |
|---|---|---|---|---|---|
| 2022-12-25 | $9.5B | $3.1B | $398.0M | $2.7B | 28.5% |
| 2023-03-26 | $9.3B | $1.5B | $453.0M | $1.0B | 10.8% |
| 2023-06-25 | $8.5B | $2.7B | $306.0M | $2.4B | 27.8% |
| 2023-09-24 | $8.6B | $4.1B | $293.0M | $3.8B | 44.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 254.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$6.0B | 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 sharply from both the prior quarter and the same quarter last year, outpacing revenue changes and lifting free cash flow.
Strong operating cash flow was the primary factor behind the free cash flow margin expansion.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow rose significantly relative to revenue, boosting the free cash flow margin to a high level. Capital expenditure declined from both comparison periods, further supporting cash conversion.
Compared to the prior quarter, revenue was slightly higher while operating cash flow and free cash flow improved substantially. Versus the same quarter a year ago, revenue was lower but free cash flow and margin strengthened markedly.
Monitor whether operating cash flow can sustain its elevated level in future quarters.