Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower than both the prior quarter and the same quarter last year. Operating cash flow and free cash flow improved significantly, turning positive from negative levels in both comparison periods.
- Operating cash flow was higher relative to revenue, while capital expenditure was lower than both the prior quarter and the year-ago quarter. This combination drove free cash flow to a positive margin, compared to negative margins in the two earlier periods.
- Compared to the immediately preceding quarter, revenue was slightly lower, operating cash flow was higher, capital expenditure was lower, and free cash flow improved from negative to positive. Versus the same quarter one year earlier, revenue was lower, operating cash flow was higher, capital expenditure was lower, and free cash flow also improved from negative to positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$913.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.1B
Cash generated by operations before capital spending.
CapEx
$1.2B
Capital spending and related asset purchases.
FCF margin
3.7%
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 |
|---|---|---|---|---|---|
| 2022-10-29 | $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% |
| 2023-07-29 | $24.8B | $2.1B | $1.2B | $913.0M | 3.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 109.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.9% | 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 Improvement
Operating cash flow was higher than both the prior quarter and the year-ago quarter, while revenue was lower. This indicates a stronger conversion of revenue into cash from operations.
The higher operating cash flow was the primary factor behind free cash flow turning positive.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was higher relative to revenue, while capital expenditure was lower than both the prior quarter and the year-ago quarter. This combination drove free cash flow to a positive margin, compared to negative margins in the two earlier periods.
Compared to the immediately preceding quarter, revenue was slightly lower, operating cash flow was higher, capital expenditure was lower, and free cash flow improved from negative to positive. Versus the same quarter one year earlier, revenue was lower, operating cash flow was higher, capital expenditure was lower, and free cash flow also improved from negative to positive.
Monitor whether operating cash flow can sustain its higher level relative to revenue in future quarters.