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 128.80M.

All amounts in GBP

Operating Cash
137.4M
Capital Expenditure
-8.6M
Free Cash Flow
128.80M

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 202231 Mar 202131 Mar 202031 Mar 2019
Net Income-62.6M24.8M69.8M33.8M
Depreciation97.9M56.1M51.5M31.7M
Change To Netincome39.1M-6.8M-13M-9.6M
Change To Account Receivables-131.9M-76.3M-56M-51.4M
Change To Liabilities35.5M-7.5M4.9M69.2M
Change To Operating Activities-5.4M-300k300k500k
Total Cash From Operating Activities137.4M58.4M122.1M136.7M
Capital Expenditures-8.6M-10.9M-18.5M-7.4M
Other Cashflows From Investing Activities1.9M-81.5M-1.7M200k
Total Cashflows From Investing Activities1.1M-3.12B-39.9M-27.2M
Dividends Paid-110M-82.4M-71.7M-66M
Net Borrowings-23.3M627.1M-15.5M-10M
Other Cashflows From Financing Activities-12.7M-33.4M-3.3M-700k
Total Cash From Financing Activities-147.3M3.35B-93.6M-86M
Effect Of Exchange Rate1.5M-109.6M-1.3M-1.9M
Change In Cash-7.3M172.1M-12.7M21.6M
Repurchase Of Stock-1.3M-1.1M-3.1M-9.3M