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).

HBR 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 Harbour Energy plc (HBR), the free cash flow value is 970.30M.

All amounts in USD

Operating Cash
Capital Expenditure
Free Cash Flow

Harbour Energy 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).

HBR Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Harbour Energy plc (LSE:HBR).

31 Dec 202131 Dec 202031 Dec 201931 Dec 2018
Net Income101.1M-778.4M218.85M368.9M
Change To Netincome376.8M170.9M393.31M369.78M
Change To Account Receivables-607.4M41.5M-6.09M32.58M
Change To Liabilities13.5M-76.3M-4.86M34.84M
Change To Inventory-13M-11.2M208k1.86M
Total Cash From Operating Activities1.61B1.37B1.52B1.45B
Capital Expenditures-643.9M-598.1M-530.28M-350.16M
Other Cashflows From Investing Activities21.5M7.4M9.45M8.62M
Total Cashflows From Investing Activities-571M-603.2M-2.78B-581.9M
Net Borrowings-530.7M-751.6M1.65B-714.6M
Other Cashflows From Financing Activities-253.4M-147.8M-143.91M-132.82M
Total Cash From Financing Activities-787.2M-899.4M1.51B-847.42M
Effect Of Exchange Rate-2.7M1.4M5.9M-1.75M
Change In Cash253.3M-127.8M256.87M16.77M
Repurchase Of Stock-3.1M-3.1M-3.1M-3.1M