Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved from the prior quarter and the year-ago quarter, driven by stronger operating cash flow despite a slight increase in capital expenditure. The free cash flow margin widened, reflecting a higher proportion of revenue converted to free cash flow.
- Revenue was stable compared to the prior quarter and lower versus the year-ago quarter, but operating cash flow rose in both comparisons, lifting free cash flow. The resulting free cash flow margin improved sequentially and year-over-year, indicating a higher conversion rate of revenue into free cash flow.
- Sequentially, operating cash flow and free cash flow were higher, and the free cash flow margin strengthened. Compared to the same quarter one year earlier, revenue was lower but operating cash flow was higher, leading to improved free cash flow and margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$944.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.1B
Cash generated by operations before capital spending.
CapEx
$194.0M
Capital spending and related asset purchases.
FCF margin
23.4%
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 |
|---|---|---|---|---|---|
| 2022-12-30 | $3.8B | $581.0M | $183.0M | $398.0M | 10.4% |
| 2023-03-31 | $4.2B | $634.0M | $189.0M | $445.0M | 10.7% |
| 2023-06-30 | $4.0B | $779.0M | $166.0M | $613.0M | 15.3% |
| 2023-09-29 | $4.0B | $1.1B | $194.0M | $944.0M | 23.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 171.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.5B | 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 increased both from the prior quarter and from the year-ago quarter, while capital expenditure rose only modestly, enabling free cash flow to grow at a faster pace.
The higher operating cash flow directly boosted free cash flow and margin, making it the strongest observable driver this quarter.
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 lower versus the year-ago quarter, but operating cash flow rose in both comparisons, lifting free cash flow. The resulting free cash flow margin improved sequentially and year-over-year, indicating a higher conversion rate of revenue into free cash flow.
Sequentially, operating cash flow and free cash flow were higher, and the free cash flow margin strengthened. Compared to the same quarter one year earlier, revenue was lower but operating cash flow was higher, leading to improved free cash flow and margin.
Monitor operating cash flow stability, as it was the primary contributor to the free cash flow increase this quarter.