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).

## DPH 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 Dechra Pharmaceuticals PLC (DPH), the free cash flow value is 102.60M.

All amounts in GBP

Operating Cash
122.9M
Capital Expenditure
-20.3M
Free Cash Flow
102.60M

Dechra Pharmaceuticals 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).

## DPH Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Dechra Pharmaceuticals PLC (LSE:DPH).

30 Jun 2022 30 Jun 2021 30 Jun 2020 30 Jun 2019
Net Income 58.2M 55.5M 33.9M 30.9M
Depreciation 47.3M 40M 25.8M 21M
Change To Netincome 1.3M -20.9M -2.6M -16.2M
Change To Account Receivables -23.4M -19.7M 6.9M -11.7M
Change To Liabilities 14.9M 20.3M 100k 6.3M
Change To Inventory -19.3M -36.6M -15.7M -14.1M
Total Cash From Operating Activities 122.9M 89.1M 106.4M 81.8M
Capital Expenditures -20.3M -18.9M -7.8M -12M
Other Cashflows From Investing Activities 100k 100k 300k 300k
Total Cashflows From Investing Activities -78.3M -136.1M -81.5M -61.9M
Dividends Paid -44.8M -37.9M -33.3M -28.4M
Net Borrowings -3.6M -19.5M 22.4M 7.3M
Total Cash From Financing Activities -46.1M -55.1M 118.9M -20.1M
Effect Of Exchange Rate 4M -6.9M 3.3M 800k
Change In Cash 2.5M -109M 147.1M 600k
Issuance Of Stock 2.3M 2.3M 131.5M 1.2M