Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both increased compared to the prior quarter and the same quarter last year. Free cash flow turned positive from a negative position in the prior quarter and improved from the year-ago quarter.
- Operating cash flow as a percentage of revenue improved significantly from the prior quarter and was higher than the year-ago quarter. Capital expenditure increased from both periods, but free cash flow margin strengthened.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow all increased. Compared to the same quarter last year, revenue and operating cash flow were higher, and free cash flow margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$656.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$571.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$762.8M
Cash generated by operations before capital spending.
CapEx
$191.6M
Capital spending and related asset purchases.
FCF margin
13.6%
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 |
|---|---|---|---|---|---|
| 2022-09-24 | $3.3B | $725000 | $185.8M | -$185.1M | -5.7% |
| 2022-12-31 | $4.0B | $730.6M | $322.2M | $408.4M | 10.2% |
| 2023-04-01 | $3.3B | $19.6M | $157.9M | -$138.4M | -4.2% |
| 2023-07-01 | $4.2B | $762.8M | $191.6M | $571.1M | 13.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 135.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.6% | 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 Recovery
Operating cash flow increased from the prior quarter and from the year-ago quarter, driving a higher free cash flow margin.
This improvement was the primary factor behind the positive free cash flow this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a percentage of revenue improved significantly from the prior quarter and was higher than the year-ago quarter. Capital expenditure increased from both periods, but free cash flow margin strengthened.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow all increased. Compared to the same quarter last year, revenue and operating cash flow were higher, and free cash flow margin improved.
Monitor inventory and accounts payable levels, as the filing notes typical seasonal builds in the first and third fiscal quarters.