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 1.759B.

All amounts in GBP

Operating Cash
Capital Expenditure
Free Cash Flow

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 2022 31 Dec 2021 31 Dec 2020 31 Dec 2019
Net Income 1.06B 1.39B 1.15B 655M
Depreciation 223M 214M 265M 225M
Change To Netincome 535M -150M -58M 332M
Change To Account Receivables -85M 14M 18M -57M
Change To Liabilities 387M 41M 140M -256M
Change To Inventory -292M -17M 130M 232M
Change To Operating Activities 171M -190M -273M -380M
Total Cash From Operating Activities 2.06B 1.36B 1.41B 786M
Capital Expenditures -304M -228M -222M -190M
Investments 700M 100M 158M 219M
Other Cashflows From Investing Activities -9.19B 16M 19M 24M
Total Cashflows From Investing Activities -8.78B -33M 1.03B 291M
Dividends Paid -2.68B -1.15B -2.37B -1.15B
Net Borrowings 9.44B -30M -16M -41M
Other Cashflows From Financing Activities 134M -62M -50M -67M
Total Cash From Financing Activities 6.91B -1.24B -2.44B -925M
Effect Of Exchange Rate 15M -4M -6M -14M
Change In Cash 205M 83M -6M 138M
Issuance Of Stock 18M 4M 4M 335M