Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved compared to both the prior quarter and the same quarter last year, driven by higher operating cash flow. The free cash flow margin strengthened as capital expenditure decreased relative to the prior quarter.
- Revenue was stable compared to the prior quarter and higher than a year ago. Operating cash flow increased, and with lower capital expenditure, free cash flow rose, resulting in a stronger free cash flow margin.
- Compared to the prior quarter, free cash flow and free cash flow margin were higher, supported by higher operating cash flow and lower capital expenditure. Versus the same quarter last year, all metrics improved: revenue, operating cash flow, free cash flow, and margin were higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.8B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.4B
Cash generated by operations before capital spending.
CapEx
$595.9M
Capital spending and related asset purchases.
FCF margin
19.0%
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 |
|---|---|---|---|---|---|
| 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% |
| 2023-12-31 | $9.4B | $2.4B | $595.9M | $1.8B | 19.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 174.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.3% | 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 Strength
Operating cash flow was higher than both the prior quarter and the same quarter last year, providing the primary support for the increase in free cash flow.
Higher operating cash flow directly boosted free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable compared to the prior quarter and higher than a year ago. Operating cash flow increased, and with lower capital expenditure, free cash flow rose, resulting in a stronger free cash flow margin.
Compared to the prior quarter, free cash flow and free cash flow margin were higher, supported by higher operating cash flow and lower capital expenditure. Versus the same quarter last year, all metrics improved: revenue, operating cash flow, free cash flow, and margin were higher.
Monitor the trend in capital expenditure, which decreased this quarter but was higher than the year-ago quarter.