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).

## AHT 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 Ashtead Group plc (AHT), the free cash flow value is 1.1006B.

All amounts in USD

Operating Cash
1.5B
Capital Expenditure
-398.4M
Free Cash Flow
1.1006B

Ashtead Group 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).

## AHT Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Ashtead Group plc (LSE:AHT).

30 Apr 2022 30 Apr 2021 30 Apr 2020 30 Apr 2019
Net Income 1.25B 920.1M 739.7M 796.9M
Depreciation 1.65B 1.53B 1.14B 889.7M
Change To Netincome -1.24B -500.8M -975M -1.12B
Change To Account Receivables -164.1M -127.8M 94.1M -84.7M
Change To Liabilities 68.8M 118.6M -13.2M 60.7M
Change To Inventory -67.2M 5.3M -500k -14.9M
Total Cash From Operating Activities 1.5B 1.94B 988.3M 526.7M
Capital Expenditures -398.4M -138.3M -208.2M -168.7M
Investments -40M -40M -40M -40M
Total Cashflows From Investing Activities -1.69B -315.1M -649.3M -749.8M
Dividends Paid -271.5M -239.1M -186.7M -164.2M
Net Borrowings 884.2M -1.66B 541.8M 855.3M
Other Cashflows From Financing Activities 2.2M 3.6M 3.6M 3.6M
Total Cash From Financing Activities 181.5M -1.91B -111.1M 216.5M
Effect Of Exchange Rate -800k 5M 700k 300k
Change In Cash -11.3M -277.8M 228.6M -6.3M
Repurchase Of Stock -433.4M -15.5M -466.2M -474.6M