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 2.656B.

All amounts in USD

Operating Cash
4.21B
Capital Expenditure
-1.55B
Free Cash Flow
2.656B

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 202131 Dec 202031 Dec 201931 Dec 2018
Net Income2.56B1.12B1.72B2.88B
Depreciation1.76B1.69B1.68B1.29B
Change To Netincome44M858M489M-1.38B
Change To Account Receivables-436M177M-87M-164M
Change To Liabilities649M-125M74M-70M
Change To Inventory-439M63M-89M-209M
Change To Operating Activities-2M81M31M-104M
Total Cash From Operating Activities4.21B3.94B3.88B2.25B
Capital Expenditures-1.55B-996M-1.37B-1.32B
Other Cashflows From Investing Activities152M162M1.97B3.06B
Total Cashflows From Investing Activities-2.55B-1.06B217M-1.77B
Dividends Paid-906M-707M-652M-619M
Net Borrowings-1.45B1.23B-890M1.3B
Other Cashflows From Financing Activities-69M11M-72M-6M
Total Cash From Financing Activities-3.31B287M-2.55B-226M
Effect Of Exchange Rate-297M338M-20M-122M
Change In Cash-1.94B3.5B1.53B126M
Repurchase Of Stock-896M-249M-954M-921M
Issuance Of Stock13M6M22M24M