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).

ABF 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 Associated British Foods plc (ABF), the free cash flow value is 862.00M.

All amounts in GBP

Operating Cash
1.41B
Capital Expenditure
-551M
Free Cash Flow
862.00M

Associated British Foods 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).

ABF Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Associated British Foods plc (LSE:ABF).

18 Sep 202112 Sep 202014 Sep 201914 Sep 2019
Net Income478M455M878M
Depreciation897M916M916M612M
Change To Netincome121M235M235M187M
Change To Account Receivables-98M81M81M18M
Change To Liabilities175M-174M44M
Change To Inventory-120M199M199M-202M
Change To Operating Activities-40M41M41M-28M
Total Cash From Operating Activities1.41B1.75B1.75B1.51B
Capital Expenditures-551M-561M-561M-680M
Investments-14M-1M-1M-1M
Other Cashflows From Investing Activities82M89M89M72M
Total Cashflows From Investing Activities-561M-518M-518M-731M
Dividends Paid-49M-271M-271M-358M
Net Borrowings-318M-292M-292M-261M
Other Cashflows From Financing Activities-145M-115M-115M-47M
Total Cash From Financing Activities-512M-678M-678M-691M
Effect Of Exchange Rate-60M-6M-6M-6M
Change In Cash280M551M551M87M