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).

DCC 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 DCC plc (DCC), the free cash flow value is 257.42M.

All amounts in GBP

Operating Cash
451.77M
Capital Expenditure
-194.35M
Free Cash Flow
257.42M

DCC 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).

DCC Cash Flow Statement History

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

31 Mar 202231 Mar 202131 Mar 202031 Mar 2019
Net Income312.37M292.62M245.51M262.59M
Depreciation290.12M259.47M238.87M172.94M
Change To Netincome18M-1.99M-4.46M-12.64M
Change To Account Receivables-614.26M-49.6M-54.02M23.14M
Change To Liabilities623.43M285.09M16.5M60.17M
Change To Inventory-177.9M-57.81M86.71M-45.84M
Total Cash From Operating Activities451.77M727.77M529.11M460.36M
Capital Expenditures-194.35M-162.88M-181.01M-182.31M
Investments772k772k772k772k
Other Cashflows From Investing Activities-29.25M-8.31M3.85M4.94M
Total Cashflows From Investing Activities-867.43M-391.52M-319.5M-426.59M
Dividends Paid-160.6M-143.52M-139.21M-116.96M
Net Borrowings157.66M-176.89M104.85M-138k
Other Cashflows From Financing Activities24.03M63.75M18.57M18.57M
Total Cash From Financing Activities21.49M-256.62M-15.46M476.05M
Effect Of Exchange Rate3.88M-47.5M24.6M-8.07M
Change In Cash-390.29M32.12M218.75M501.74M
Issuance Of Stock397k37k326k593.15M