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).

HLN 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 Haleon plc (HLN), the free cash flow value is 1.128B.

All amounts in GBP

Operating Cash
1.36B
Capital Expenditure
-228M
Free Cash Flow
1.128B

Haleon 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).

HLN Cash Flow Statement History

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

31 Dec 202131 Dec 202031 Dec 2019
Net Income1.39B1.15B655M
Depreciation214M265M225M
Change To Netincome-150M-58M332M
Change To Account Receivables14M18M-57M
Change To Liabilities41M140M-256M
Change To Inventory-17M130M232M
Change To Operating Activities-190M-273M-380M
Total Cash From Operating Activities1.36B1.41B786M
Capital Expenditures-228M-222M-190M
Investments100M158M219M
Other Cashflows From Investing Activities16M19M24M
Total Cashflows From Investing Activities-33M1.03B291M
Dividends Paid-1.15B-2.37B-1.15B
Net Borrowings-30M-16M-41M
Other Cashflows From Financing Activities-62M-50M-67M
Total Cash From Financing Activities-1.24B-2.44B-925M
Effect Of Exchange Rate-5M-6M-14M
Change In Cash82M-6M138M
Issuance Of Stock4M4M335M