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 prior quarter and higher than the same quarter last year. Operating cash flow turned negative, resulting in a negative free cash flow margin that weakened significantly from both comparison periods.
- Despite revenue being unchanged from the prior quarter, operating cash flow shifted from positive to negative, driving free cash flow deeply negative. The free cash flow margin dropped from positive levels in both the prior quarter and the year-ago quarter to a negative figure.
- Compared to the prior quarter, revenue was stable while operating cash flow and free cash flow both weakened substantially. Versus the same quarter last year, revenue was higher but operating cash flow and free cash flow were lower, with the free cash flow margin declining from a slightly negative to a more negative level.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$2.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$4.4B
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$4.0B
Cash generated by operations before capital spending.
CapEx
$485.2M
Capital spending and related asset purchases.
FCF margin
-50.9%
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 |
|---|---|---|---|---|---|
| 2022-07-03 | $8.2B | $1.3B | $423.5M | $841.3M | 10.3% |
| 2022-10-02 | $8.4B | $1.1B | $545.9M | $553.8M | 6.6% |
| 2023-01-01 | $8.7B | $1.6B | $516.8M | $1.1B | 12.4% |
| 2023-04-02 | $8.7B | -$4.0B | $485.2M | -$4.4B | -50.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -488.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.6% | 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 Swing
Operating cash flow moved from a positive level in the prior quarter to a negative figure this quarter, while revenue remained unchanged. This shift was the primary observable factor behind the negative free cash flow and the decline in free cash flow margin.
The negative operating cash flow directly caused free cash flow to be negative and the free cash flow margin to weaken significantly.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Despite revenue being unchanged from the prior quarter, operating cash flow shifted from positive to negative, driving free cash flow deeply negative. The free cash flow margin dropped from positive levels in both the prior quarter and the year-ago quarter to a negative figure.
Compared to the prior quarter, revenue was stable while operating cash flow and free cash flow both weakened substantially. Versus the same quarter last year, revenue was higher but operating cash flow and free cash flow were lower, with the free cash flow margin declining from a slightly negative to a more negative level.
Monitor the trajectory of operating cash flow, as it turned negative this quarter despite stable revenue.