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 473.00M.

All amounts in GBP

Operating Cash
Capital Expenditure
Free Cash Flow

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).

17 Sep 2022 18 Sep 2021 12 Sep 2020 14 Sep 2019
Net Income 700M 478M 455M
Depreciation 870M 897M 916M 916M
Change To Netincome 305M 121M 235M 235M
Change To Account Receivables -288M -98M 81M 81M
Change To Liabilities 512M 175M -174M
Change To Inventory -953M -120M 199M 199M
Change To Operating Activities 7M -40M 41M 41M
Total Cash From Operating Activities 1.15B 1.41B 1.75B 1.75B
Capital Expenditures -680M -551M -561M -561M
Investments -7M -14M -1M -1M
Other Cashflows From Investing Activities 156M 82M 89M 89M
Total Cashflows From Investing Activities -744M -561M -518M -518M
Dividends Paid -380M -49M -271M -271M
Net Borrowings -155M -318M -292M -292M
Other Cashflows From Financing Activities -92M -145M -115M -115M
Total Cash From Financing Activities -677M -512M -678M -678M
Effect Of Exchange Rate 74M -60M -6M -6M
Change In Cash -194M 280M 551M 551M
Repurchase Of Stock -50M -50M -50M -50M