Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to the same quarter one year earlier, while operating cash flow turned positive from a negative position. Free cash flow remained negative but improved significantly from the prior year, though it weakened sharply from the immediately preceding quarter.
- Operating cash flow was lower than capital expenditure, resulting in negative free cash flow and a negative free cash flow margin. Revenue was essentially flat year over year, but operating cash flow improved from a negative to a positive figure, indicating a shift in cash conversion efficiency.
- Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all decreased. Compared to the same quarter one year earlier, revenue was slightly higher, operating cash flow improved from negative to positive, capital expenditure was higher, and free cash flow and free cash flow margin improved from negative levels.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$496.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$340.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.3B
Cash generated by operations before capital spending.
CapEx
$1.6B
Capital spending and related asset purchases.
FCF margin
-1.3%
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 |
|---|---|---|---|---|---|
| 2022-07-30 | $26.0B | $1.3B | $1.6B | -$224.0M | -0.9% |
| 2022-10-29 | $26.5B | $599.0M | $1.8B | -$1.2B | -4.5% |
| 2023-01-28 | $31.4B | $3.5B | $1.2B | $2.3B | 7.2% |
| 2023-04-29 | $25.3B | $1.3B | $1.6B | -$340.0M | -1.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -35.8% | 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 Turnaround
Operating cash flow shifted from negative in the year-ago quarter to positive in the current quarter, while revenue was essentially unchanged. This improvement was the strongest observable driver of the free cash flow change relative to the prior year.
The positive operating cash flow reduced the magnitude of negative free cash flow compared to the prior year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than capital expenditure, resulting in negative free cash flow and a negative free cash flow margin. Revenue was essentially flat year over year, but operating cash flow improved from a negative to a positive figure, indicating a shift in cash conversion efficiency.
Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all decreased. Compared to the same quarter one year earlier, revenue was slightly higher, operating cash flow improved from negative to positive, capital expenditure was higher, and free cash flow and free cash flow margin improved from negative levels.
Monitor whether operating cash flow can sustain its positive level relative to capital expenditure, as free cash flow remained negative.