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