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).

## HSV 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 HomeServe plc (HSV), the free cash flow value is 201.40M.

All amounts in GBP

HomeServe 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).

## HSV Cash Flow Statement History

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

31 Mar 2022 | 31 Mar 2021 | 31 Mar 2020 | 31 Mar 2019 | |
---|---|---|---|---|

Net Income | 132.8M | 31.1M | 106M | 108.5M |

Depreciation | 80.8M | 79.2M | 66.6M | 41.2M |

Change To Netincome | 1.9M | 93.5M | 21M | 10M |

Change To Account Receivables | -26.1M | -20M | -46.3M | 104M |

Change To Liabilities | -10.2M | -4.3M | 3.2M | -133.7M |

Change To Inventory | -4.9M | -800k | -1M | -700k |

Total Cash From Operating Activities | 207.6M | 223M | 192M | 162M |

Capital Expenditures | -6.2M | -7.1M | -8.2M | -9M |

Investments | -3.6M | -2.2M | 8.4M | -5.4M |

Other Cashflows From Investing Activities | -1.2M | 100k | 500k | 200k |

Total Cashflows From Investing Activities | -194.3M | -154.4M | -217.6M | -158.4M |

Dividends Paid | -89.3M | -80.5M | -73.5M | -65M |

Net Borrowings | 98.6M | 41.1M | 170.2M | 74.7M |

Other Cashflows From Financing Activities | -18.5M | -2.2M | -8.5M | -1.6M |

Total Cash From Financing Activities | -9.2M | -41.6M | 85.3M | 10.3M |

Effect Of Exchange Rate | 4M | -8.8M | -1.1M | 900k |

Change In Cash | 8.1M | 18.2M | 58.6M | 14.8M |