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 2022 31 Mar 2021 31 Mar 2020 31 Mar 2019
Net Income 312.37M 292.62M 245.51M 262.59M
Depreciation 290.12M 259.47M 238.87M 172.94M
Change To Netincome 18M -1.99M -4.46M -12.64M
Change To Account Receivables -614.26M -49.6M -54.02M 23.14M
Change To Liabilities 623.43M 285.09M 16.5M 60.17M
Change To Inventory -177.9M -57.81M 86.71M -45.84M
Total Cash From Operating Activities 451.77M 727.77M 529.11M 460.36M
Capital Expenditures -194.35M -162.88M -181.01M -182.31M
Investments 772k 772k 772k 772k
Other Cashflows From Investing Activities -29.25M -8.31M 3.85M 4.94M
Total Cashflows From Investing Activities -867.43M -391.52M -319.5M -426.59M
Dividends Paid -160.6M -143.52M -139.21M -116.96M
Net Borrowings 157.66M -176.89M 104.85M -138k
Other Cashflows From Financing Activities 24.03M 63.75M 18.57M 18.57M
Total Cash From Financing Activities 21.49M -256.62M -15.46M 476.05M
Effect Of Exchange Rate 3.88M -47.5M 24.6M -8.07M
Change In Cash -390.29M 32.12M 218.75M 501.74M
Issuance Of Stock 397k 37k 326k 593.15M