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).

AVST 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 Avast plc (AVST), the free cash flow value is 460.40M.

All amounts in USD

Operating Cash
469.4M
Capital Expenditure
-9M
Free Cash Flow
460.40M

Avast 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).

AVST Cash Flow Statement History

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

31 Dec 202131 Dec 202031 Dec 201931 Dec 2018
Net Income348.4M169.6M248.7M241.2M
Depreciation39.3M77.6M88.3M84.1M
Change To Netincome41.9M152.2M12.1M-70.9M
Change To Account Receivables7.6M14.7M-9.3M4.1M
Change To Liabilities27.2M31.6M38.7M57.9M
Change To Inventory100k800k-1.1M-1.1M
Total Cash From Operating Activities469.4M456.5M399.1M376M
Capital Expenditures-9M-12.4M-26.3M-13.5M
Other Cashflows From Investing Activities200k400k1.5M300k
Total Cashflows From Investing Activities-900k-16.4M-16.7M-28.8M
Dividends Paid-165M-154.7M-127M-127M
Net Borrowings-31.5M-269.1M-367.1M-380M
Other Cashflows From Financing Activities-18.8M-94.4M6M-74.7M
Total Cash From Financing Activities-204.6M-484.2M-440.9M-254M
Effect Of Exchange Rate-10.4M3M2.8M2.8M
Change In Cash253.6M-41.2M-55.7M96M
Issuance Of Stock10.7M34M47.2M200.7M