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).

BKG 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 The Berkeley Group Holdings plc (BKG), the free cash flow value is -130.80M.

All amounts in GBP

Operating Cash
-129.5M
Capital Expenditure
-1.3M
Free Cash Flow
-130.80M

The Berkeley Group Holdings plc has a negative 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).

BKG Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for The Berkeley Group Holdings plc (LSE:BKG).

30 Apr 2022 30 Apr 2021 30 Apr 2020 30 Apr 2019
Net Income 482.4M 422.7M 410.1M 627.4M
Depreciation 5.6M 5.9M 4.7M 2.4M
Change To Netincome -486.7M -28.1M -32.6M -41.3M
Change To Account Receivables -61M -5.1M -3.8M -20.9M
Change To Liabilities 260.9M 25.5M 369.9M -138.4M
Change To Inventory -332.5M -97.6M -440.2M 181.9M
Total Cash From Operating Activities -129.5M 324.2M 308.9M 612.3M
Capital Expenditures -1.3M -2.4M -9.7M -19.5M
Other Cashflows From Investing Activities -26.7M 2.5M 146.2M -54M
Total Cashflows From Investing Activities -27.7M 900k 137.1M -73.2M
Net Borrowings -226.9M -201.8M 198M 198M
Total Cash From Financing Activities -342.1M -535.8M -82.1M -251.4M
Change In Cash -499.3M -210.7M 363.9M 287.7M
Repurchase Of Stock -515.2M -188.6M -130.5M -198.9M
Issuance Of Stock 400M 100k 200k 500k