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).

AVV 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 AVEVA Group plc (AVV), the free cash flow value is 47.50M.

All amounts in GBP

Operating Cash
58.4M
Capital Expenditure
-10.9M
Free Cash Flow
47.50M

AVEVA 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).

AVV Cash Flow Statement History

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

31 Mar 202131 Mar 202031 Mar 201931 Mar 2018
Net Income24.8M69.8M33.8M40.5M
Depreciation56.1M51.5M31.7M18.1M
Change To Netincome-6.8M-13M-9.6M-28.1M
Change To Account Receivables-75.6M-56M-51.4M-28.4M
Change To Liabilities-7.5M4.9M69.2M28.9M
Change To Operating Activities-1M300k500k100k
Total Cash From Operating Activities58.4M122.1M136.7M62.6M
Capital Expenditures-10.9M-18.5M-7.4M-4.9M
Investments-200k500k-400k-8k
Other Cashflows From Investing Activities-81.3M-1.7M200k500k
Total Cashflows From Investing Activities-3.12B-39.9M-27.2M133M
Dividends Paid-82.4M-71.7M-66M-66M
Net Borrowings627.1M-15.5M-10M10M
Other Cashflows From Financing Activities-33.4M-3.3M-700k-123.3M
Total Cash From Financing Activities3.35B-93.6M-86M-113.3M
Effect Of Exchange Rate-109.6M-1.3M-1.9M900k
Change In Cash172.1M-12.7M21.6M83.2M
Repurchase Of Stock-1.1M-3.1M-9.3M-9.3M
Issuance Of Stock2.84B2.84B2.84B2.84B