Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to both the prior quarter and the same quarter last year. Free cash flow and free cash flow margin were lower than both comparison periods.
- Operating cash flow was lower than both the prior quarter and the year-ago quarter, while capital expenditure was higher than both periods. This resulted in free cash flow and free cash flow margin declining relative to both comparisons.
- Compared to the immediately preceding quarter, free cash flow and free cash flow margin weakened, driven by lower operating cash flow and higher capital expenditure. Versus the same quarter one year earlier, free cash flow and free cash flow margin also weakened, with operating cash flow lower and capital expenditure higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$797.6M
Trailing twelve-month free cash flow.
Quarter free cash flow
$163.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$190.5M
Cash generated by operations before capital spending.
CapEx
$27.3M
Capital spending and related asset purchases.
FCF margin
11.5%
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 | $1.4B | $268.9M | $16.7M | $252.2M | 18.5% |
| 2023-01-01 | $1.4B | $237.7M | $34.1M | $203.6M | 14.4% |
| 2023-04-02 | $1.4B | $203.0M | $24.4M | $178.6M | 12.9% |
| 2023-07-02 | $1.4B | $190.5M | $27.3M | $163.2M | 11.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 88.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.0B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Weaker Cash Conversion
The decline in free cash flow and free cash flow margin was driven by a combination of lower operating cash flow and higher capital expenditure relative to both the prior quarter and the year-ago quarter. Revenue was unchanged across all periods.
The company generated less free cash flow from the same level of revenue compared to both the prior quarter and the year-ago quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than both the prior quarter and the year-ago quarter, while capital expenditure was higher than both periods. This resulted in free cash flow and free cash flow margin declining relative to both comparisons.
Compared to the immediately preceding quarter, free cash flow and free cash flow margin weakened, driven by lower operating cash flow and higher capital expenditure. Versus the same quarter one year earlier, free cash flow and free cash flow margin also weakened, with operating cash flow lower and capital expenditure higher.
Monitor the trajectory of operating cash flow, as it declined from both the prior quarter and the year-ago quarter while revenue remained stable.