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).

## CRH 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 CRH plc (CRH), the free cash flow value is 2.431B.

All amounts in USD

Operating Cash
3.95B
Capital Expenditure
-1.52B
Free Cash Flow
2.431B

CRH 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).

## CRH Cash Flow Statement History

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

31 Dec 2022 31 Dec 2021 31 Dec 2020 31 Dec 2019
Net Income 3.85B 2.56B 1.12B 1.72B
Depreciation 1.72B 1.66B 1.59B 1.68B
Change To Netincome -1.14B 140M 962M 489M
Change To Account Receivables -209M -436M 177M -87M
Change To Liabilities 380M 649M -125M 74M
Change To Inventory -655M -439M 63M -89M
Change To Operating Activities -34M -2M 81M 31M
Total Cash From Operating Activities 3.95B 4.21B 3.94B 3.88B
Capital Expenditures -1.52B -1.55B -996M -1.37B
Investments -42M -42M -1M -32M
Other Cashflows From Investing Activities 3.58B 34M 35M 1.97B
Total Cashflows From Investing Activities -884M -2.55B -1.06B 217M
Dividends Paid -917M -906M -707M -652M
Net Borrowings -575M -1.45B 1.23B -890M
Other Cashflows From Financing Activities -27M -69M 11M -72M
Total Cash From Financing Activities -2.69B -3.31B 287M -2.55B
Effect Of Exchange Rate -231M -297M 338M -20M
Change In Cash 153M -1.94B 3.5B 1.53B
Repurchase Of Stock -1.18B -896M -249M -954M
Issuance Of Stock 11M 13M 6M 22M