Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion improved sharply as operating cash flow strengthened, leading to free cash flow well above both the prior and year-ago quarters. The free-cash-flow margin expanded from the prior quarter and from the same quarter last year.
- Revenue was slightly higher than the preceding quarter and higher than a year ago. Operating cash flow rose substantially, and while capital expenditure was also higher, free cash flow improved strongly, resulting in a wider free-cash-flow margin.
- Compared with the immediately preceding quarter, free cash flow and free-cash-flow margin were both higher. Versus the same quarter one year earlier, free cash flow and free-cash-flow margin were also higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$757.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$922.3M
Cash generated by operations before capital spending.
CapEx
$164.8M
Capital spending and related asset purchases.
FCF margin
4.0%
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 |
|---|---|---|---|---|---|
| 2022-07-02 | $19.0B | $1.0B | $305.5M | $739.7M | 3.9% |
| 2022-10-01 | $19.1B | $158.6M | $167.3M | -$8.7M | -0.0% |
| 2022-12-31 | $18.6B | $344.9M | $142.4M | $202.5M | 1.1% |
| 2023-04-01 | $18.9B | $922.3M | $164.8M | $757.5M | 4.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 176.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.9% | 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 strength
The increase in operating cash flow was the strongest observable driver of the quarter's free cash flow improvement. Revenue was stable relative to the prior quarter, while operating cash flow rose markedly.
Higher operating cash flow directly lifted free cash flow and margin, making this the key positive factor in the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly higher than the preceding quarter and higher than a year ago. Operating cash flow rose substantially, and while capital expenditure was also higher, free cash flow improved strongly, resulting in a wider free-cash-flow margin.
Compared with the immediately preceding quarter, free cash flow and free-cash-flow margin were both higher. Versus the same quarter one year earlier, free cash flow and free-cash-flow margin were also higher.
Monitor whether operating cash flow can sustain its current level relative to revenue over coming quarters.