Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the current quarter, the company generated strong free cash flow from operations, with a significant positive margin. Revenue increased compared to both the prior quarter and the same quarter last year, while operating cash flow turned sharply positive.
- Revenue grew, and operating cash flow improved markedly from a negative position in the prior quarter to a positive level, driving free cash flow to a substantial positive figure. Capital expenditure also increased, but the rise in operating cash flow more than offset it, resulting in a high free cash flow margin.
- Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and margin all improved markedly. Versus the same quarter one year earlier, revenue and operating cash flow were higher, and free cash flow margin strengthened significantly.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$5.8B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$6.4B
Cash generated by operations before capital spending.
CapEx
$632.1M
Capital spending and related asset purchases.
FCF margin
63.2%
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 | $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% |
| 2023-07-02 | $9.2B | $6.4B | $632.1M | $5.8B | 63.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 507.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.9% | 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 Recovery
Operating cash flow swung from a large negative in the prior quarter to a large positive in the current quarter, which was the primary driver of the free cash flow improvement. This shift occurred despite an increase in capital expenditure.
The reversal in operating cash flow directly enabled the generation of substantial free cash flow, resulting in a high positive margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue grew, and operating cash flow improved markedly from a negative position in the prior quarter to a positive level, driving free cash flow to a substantial positive figure. Capital expenditure also increased, but the rise in operating cash flow more than offset it, resulting in a high free cash flow margin.
Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and margin all improved markedly. Versus the same quarter one year earlier, revenue and operating cash flow were higher, and free cash flow margin strengthened significantly.
Monitor the cash and investment balance disclosed in the filing, as well as any updates to the borrowing capacity details.