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