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).

## CTEC 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 ConvaTec Group Plc (CTEC), the free cash flow value is 211.80M.

All amounts in USD

Operating Cash
305.9M
Capital Expenditure
-94.1M
Free Cash Flow
211.80M

ConvaTec 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).

## CTEC Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for ConvaTec Group Plc (LSE:CTEC).

31 Dec 2021 31 Dec 2020 31 Dec 2019 31 Dec 2018
Net Income 117.6M 112.5M 9.8M 221.6M
Depreciation 196.9M 188.2M 199.4M 180.7M
Change To Netincome 9.3M 41.5M 119.4M -36.4M
Change To Account Receivables -29.4M 6.5M -13.9M 6.7M
Change To Liabilities 10.7M 47.5M 43.8M 2.3M
Change To Inventory -19.6M -5.3M 20.4M -33.1M
Change To Operating Activities 6.7M -900k 1.3M 900k
Total Cash From Operating Activities 305.9M 399.5M 401.8M 352M
Capital Expenditures -94.1M -86.2M -61.4M -72.1M
Total Cashflows From Investing Activities -206.5M -56.3M -72.8M -80.9M
Dividends Paid -85.8M -62.9M -79.9M -74.9M
Net Borrowings -114.1M -93.6M -158.6M -154.5M
Total Cash From Financing Activities -199.9M -162.1M -252.5M -229.4M
Effect Of Exchange Rate -1.5M -1.5M -6.3M -15.4M
Change In Cash -102M 179.6M 70.2M 26.3M