Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and free cash flow both improved compared to the same quarter last year, while free cash flow margin strengthened. However, operating cash flow and free cash flow declined sharply from the prior quarter, resulting in a much lower free cash flow margin.
- Operating cash flow as a proportion of revenue was lower than the prior quarter but higher than the year-ago quarter. After deducting capital expenditure, free cash flow margin followed a similar pattern, reflecting a conversion rate that weakened sequentially but improved year-over-year.
- Compared to the prior quarter, operating cash flow and free cash flow were substantially lower, while revenue was slightly higher. Versus the same quarter last year, all metrics—revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin—were higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.9B
Cash generated by operations before capital spending.
CapEx
$699.5M
Capital spending and related asset purchases.
FCF margin
13.3%
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 |
|---|---|---|---|---|---|
| 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% |
| 2023-10-01 | $9.4B | $1.9B | $699.5M | $1.2B | 13.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 102.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.5% | 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.
Sequential cash flow decline
Operating cash flow fell sharply from the prior quarter despite a small revenue increase, causing free cash flow to drop. This was the strongest observable driver of the quarter's cash conversion performance.
The weakened cash conversion from the prior quarter reduced free cash flow margin significantly.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue was lower than the prior quarter but higher than the year-ago quarter. After deducting capital expenditure, free cash flow margin followed a similar pattern, reflecting a conversion rate that weakened sequentially but improved year-over-year.
Compared to the prior quarter, operating cash flow and free cash flow were substantially lower, while revenue was slightly higher. Versus the same quarter last year, all metrics—revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin—were higher.
Monitor the relationship between operating cash flow and revenue, as the sequential decline in cash conversion was the most pronounced change this quarter.