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 the same quarter last year, driven by higher operating cash flow and lower capital expenditure. However, it weakened sequentially from the prior quarter due to a decline in operating cash flow.
- Revenue was stable compared to the year-ago quarter, while operating cash flow increased and capital expenditure decreased, resulting in a higher free cash flow margin. Sequentially, revenue declined and operating cash flow fell more sharply, leading to a lower free cash flow margin.
- Compared to the prior quarter, free cash flow and margin were lower, driven by a reduction in operating cash flow. Versus the same quarter last year, free cash flow and margin were higher, supported by stronger operating cash flow and reduced capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$568.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$719.0M
Cash generated by operations before capital spending.
CapEx
$151.0M
Capital spending and related asset purchases.
FCF margin
14.8%
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 |
|---|---|---|---|---|---|
| 2023-03-31 | $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% |
| 2023-12-29 | $3.8B | $719.0M | $151.0M | $568.0M | 14.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 31.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.9% | 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.
Operating Cash Flow Improvement
Operating cash flow increased compared to the same quarter last year, contributing to a higher free cash flow despite stable revenue. This improvement was the strongest observable driver of the year-over-year free cash flow growth.
The higher operating cash flow relative to the year-ago quarter directly supported the improvement in 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 year-ago quarter, while operating cash flow increased and capital expenditure decreased, resulting in a higher free cash flow margin. Sequentially, revenue declined and operating cash flow fell more sharply, leading to a lower free cash flow margin.
Compared to the prior quarter, free cash flow and margin were lower, driven by a reduction in operating cash flow. Versus the same quarter last year, free cash flow and margin were higher, supported by stronger operating cash flow and reduced capital expenditure.
Monitor the trend in operating cash flow, as its sequential decline was the primary factor behind the weaker free cash flow this quarter.