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).

BDEV 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 Barratt Developments plc (BDEV), the free cash flow value is 1.0751B.

All amounts in GBP

Operating Cash
1.08B
Capital Expenditure
-7.2M
Free Cash Flow
1.0751B

Barratt Developments 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).

BDEV Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Barratt Developments plc (LSE:BDEV).

30 Jun 202130 Jun 202030 Jun 201930 Jun 2018
Net Income659.8M399.7M740M671.7M
Depreciation20.7M20.3M4.3M5.4M
Change To Netincome-5.2M-112.5M-35.5M21.1M
Change To Account Receivables-93.1M128.9M-2.3M-39.4M
Change To Liabilities74.8M-373.8M-53.3M-102.3M
Change To Inventory385.9M-211.8M-291.9M-44.6M
Change To Operating Activities39.4M28.2M28.2M2.4M
Total Cash From Operating Activities1.08B-121M361.3M514.3M
Capital Expenditures-7.2M-7.5M-7.2M-7.5M
Investments-2.5M41M34.5M-46.9M
Other Cashflows From Investing Activities23.2M27.7M65.4M44.7M
Total Cashflows From Investing Activities13.5M61.2M81.5M-9.7M
Dividends Paid-76.3M-197.8M-277.7M-259.9M
Net Borrowings-127.2M-74.1M-16.1M130.4M
Other Cashflows From Financing Activities-1.6M-9.2M-9.2M-7.3M
Total Cash From Financing Activities-197M-456.4M-483M-306.6M
Change In Cash898.8M-516.2M-40.2M198M
Issuance Of Stock8.1M6M7.1M8.5M