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).

FRES 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 Fresnillo plc (FRES), the free cash flow value is 303.09M.

All amounts in USD

Operating Cash
895.14M
Capital Expenditure
-592.05M
Free Cash Flow
303.09M

Fresnillo 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).

FRES Cash Flow Statement History

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

31 Dec 202131 Dec 202031 Dec 201931 Dec 2018
Net Income421.21M374.12M204M349.85M
Depreciation529.39M515.91M490.68M411.76M
Change To Netincome-113.46M157.42M-202.14M-45.37M
Change To Account Receivables85.58M-61.56M-39.26M-60.38M
Change To Liabilities19.25M10.93M14.63M8.17M
Change To Inventory-44.6M-79.47M-28.72M-63.92M
Change To Operating Activities-2.23M331k-3.28M-11.75M
Total Cash From Operating Activities895.14M917.68M435.91M588.36M
Capital Expenditures-592.05M-412.33M-559.26M-668.67M
Other Cashflows From Investing Activities84.44M45.96M48.48M55.82M
Total Cashflows From Investing Activities-501.56M-366.1M-509.48M-591.35M
Dividends Paid-245.56M-104.69M-142.18M-298.07M
Net Borrowings35.69M343.26M-4.68M-4.68M
Other Cashflows From Financing Activities-17.45M-59.84M-3.81M-11.56M
Total Cash From Financing Activities-227.32M178.73M-150.67M-309.63M
Effect Of Exchange Rate-1.39M3.52M31k-2.62M
Change In Cash164.87M733.84M-224.21M-315.25M