Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was negative, driven by a very low operating cash flow relative to revenue and a capital expenditure that exceeded operating cash flow. The free cash flow margin weakened compared to the prior quarter but improved from the same quarter last year.
- Revenue was stable, but operating cash flow was minimal, resulting in a negative free cash flow after capital expenditure. The free cash flow margin was negative, reflecting that cash conversion from revenue was very low.
- Compared to the prior quarter, operating cash flow and free cash flow were lower, and the free cash flow margin weakened. Compared to the same quarter one year earlier, operating cash flow improved from negative to positive, and free cash flow and margin also improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$95.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$501.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$7.0M
Cash generated by operations before capital spending.
CapEx
$508.0M
Capital spending and related asset purchases.
FCF margin
-3.8%
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 |
|---|---|---|---|---|---|
| 2022-07-02 | $13.5B | $666.0M | $476.0M | $190.0M | 1.4% |
| 2022-10-01 | $13.7B | $797.0M | $564.0M | $233.0M | 1.7% |
| 2022-12-31 | $13.3B | $762.0M | $589.0M | $173.0M | 1.3% |
| 2023-04-01 | $13.1B | $7.0M | $508.0M | -$501.0M | -3.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 516.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.9% | 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 Weakness
Operating cash flow was very low relative to revenue, which was the primary factor behind the negative free cash flow. Capital expenditure remained substantial, further pressuring free cash flow.
The combination of minimal operating cash flow and ongoing capital expenditure resulted in a negative free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable, but operating cash flow was minimal, resulting in a negative free cash flow after capital expenditure. The free cash flow margin was negative, reflecting that cash conversion from revenue was very low.
Compared to the prior quarter, operating cash flow and free cash flow were lower, and the free cash flow margin weakened. Compared to the same quarter one year earlier, operating cash flow improved from negative to positive, and free cash flow and margin also improved.
Monitor whether operating cash flow can sustain a positive level given the minimal amount this quarter.