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