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).

HLMA 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 Halma plc (HLMA), the free cash flow value is 212.20M.

All amounts in GBP

Operating Cash
237.4M
Capital Expenditure
-25.2M
Free Cash Flow
212.20M

Halma 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).

HLMA Cash Flow Statement History

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

31 Mar 2022 31 Mar 2021 31 Mar 2020 31 Mar 2019
Net Income 244.4M 203.4M 184.4M 169.8M
Depreciation 79.1M 80M 74.6M 55.9M
Change To Netincome -24.2M -22.3M -5.9M 2.8M
Change To Account Receivables -43.6M 4.3M -9M -15.3M
Change To Liabilities 36.1M 7.9M 8.9M 8.2M
Change To Inventory -51.9M -6.7M -5.1M -9.2M
Change To Operating Activities -12M 700k -2.5M -3.5M
Total Cash From Operating Activities 237.4M 277.6M 255.5M 219M
Capital Expenditures -25.2M -22.8M -31.2M -26.4M
Investments -700k -3.4M -4.8M -4.8M
Other Cashflows From Investing Activities 200k 800k 500k 400k
Total Cashflows From Investing Activities -134.7M -64.2M -276.4M -104M
Dividends Paid -68.7M -63.7M -61.2M -57.2M
Net Borrowings 14.3M -93.6M 142.7M -43.9M
Other Cashflows From Financing Activities -8.2M -10M -11.1M -8.7M
Total Cash From Financing Activities -81.9M -183.5M 53.7M -113.6M
Effect Of Exchange Rate 4.8M -4.2M 500k 1M
Change In Cash 25.6M 25.7M 33.3M 2.4M
Repurchase Of Stock -19.3M -16.2M -16.7M -3.8M