Cash flow is the net amount of cash and cash-equivalents being transferred into and out of a business. At the most fundamental level, a company’s ability to create value for shareholders is determined by its ability to generate positive cash flows, or more specifically, maximize long-term free cash flow (FCF).

ABDN Free Cash Flow Analysis

Free cash flow, a measure commonly used by analysts to assess a company's profitability, represents the cash a company generates after accounting for cash outflows to support operations and maintain its capital assets.

The Free Cash Flow is calculated using a number of methods including using Operating Cash Flow. Following is the formula to calculate Free Cash Flow based on Operating Cash Flow.

Free Cash Flow = Operating Cash Flow - Capital Expenditures

Using above formula to calculate Free Cash Flow for abrdn plc (ABDN), the free cash flow value is 2.00M.

All amounts in GBP

Operating Cash
14M
Capital Expenditure
-12M
Free Cash Flow
2.00M

abrdn plc has a positive free cash flow as per the latest annual Cash flow statement released by the company. Positive free cash flow is cruscial for the financial health of a company, which can be used to pay dividends, expand operations, and deleverage its balance sheet (i.e., reduce debt).

ABDN Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for abrdn plc (LSE:ABDN).

31 Dec 202131 Dec 202031 Dec 201931 Dec 2018
Net Income994M833M266M830M
Depreciation126M157M190M212M
Change To Netincome-1.13B-801M-163M-970M
Change To Account Receivables26M46M227M-1.8B
Change To Liabilities-68M6M-8M57M
Change To Operating Activities47M-226M-352M1.89B
Total Cash From Operating Activities14M56M201M250M
Capital Expenditures-12M-13M-28M-28M
Investments863M1.12B1.88B125M
Other Cashflows From Investing Activities-33M-33M-22M-5.52B
Total Cashflows From Investing Activities755M1.01B1.82B-5.58B
Dividends Paid-308M-479M-518M-634M
Net Borrowings181M-29M-487M-1.38B
Other Cashflows From Financing Activities-34M-41M-44M-1.1B
Total Cash From Financing Activities-243M-1.06B-1.61B-3.46B
Effect Of Exchange Rate-9M5M-17M32M
Change In Cash517M11M390M-8.76B
Repurchase Of Stock-82M-415M-566M-338M