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).

BRBY 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 Burberry Group plc (BRBY), the free cash flow value is 575.00M.

All amounts in GBP

Operating Cash
699M
Capital Expenditure
-124M
Free Cash Flow
575.00M

Burberry 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).

BRBY Cash Flow Statement History

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

02 Apr 202227 Mar 202128 Mar 202030 Mar 2019
Net Income396M376M121.7M339.3M
Depreciation275M244M305.3M88.1M
Change To Netincome-64M-35M69.7M15.3M
Change To Account Receivables-5M-39M-9.8M-54.6M
Change To Liabilities81M-7M-84M54.9M
Change To Inventory-22M21M27.4M-59.3M
Total Cash From Operating Activities699M592M455.8M411.4M
Capital Expenditures-124M-73M-85.3M-62.6M
Other Cashflows From Investing Activities-4M-3M-5.6M-5.6M
Total Cashflows From Investing Activities-164M-91M-151.4M-124.5M
Dividends Paid-219M-219M-175.2M-171.1M
Net Borrowings-202M-156M61.9M61.9M
Other Cashflows From Financing Activities-3M-5M-2.7M-11.1M
Total Cash From Financing Activities-581M-159M-262.9M-343.4M
Effect Of Exchange Rate7M-13M8.5M1.7M
Change In Cash-39M329M50M-54.8M
Repurchase Of Stock-161M-161M-150.7M-163.5M
Issuance Of Stock4M2M3.8M2.3M