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).

## HL 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 Hargreaves Lansdown plc (HL), the free cash flow value is 260.10M.

All amounts in GBP

Operating Cash
262.9M
Capital Expenditure
-2.8M
Free Cash Flow
260.10M

Hargreaves Lansdown 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).

## HL Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Hargreaves Lansdown plc (LSE:HL).

30 Jun 2022 30 Jun 2021 30 Jun 2020 30 Jun 2019
Net Income 216.3M 296.7M 313.1M 247.4M
Depreciation 9.5M 9.4M 8.9M 5.5M
Change To Netincome 11.5M 5M -60.7M 11.5M
Change To Account Receivables 305.8M -66M -209.6M -128.4M
Change To Liabilities -285.7M 75.8M 208.9M 121M
Change To Operating Activities -100k 2M 100k 100k
Total Cash From Operating Activities 262.9M 328.6M 265.4M 261.5M
Capital Expenditures -2.8M -5.4M -5.8M -7.6M
Investments 40.1M 169.7M -14.5M 7.4M
Total Cashflows From Investing Activities 26.4M 151.7M 7.8M -9.7M
Dividends Paid -184.1M -181.1M -164M -153.5M
Net Borrowings -3.9M -4M -4.3M -4.3M
Total Cash From Financing Activities -246.3M -270.9M -216.6M -197.8M
Change In Cash 43M 209.4M 56.6M 54M
Repurchase Of Stock -4.2M -7.7M -14.8M -15M
Issuance Of Stock 2.8M 4.3M 5.8M 7.7M