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).

## HWDN 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 Howden Joinery Group Plc (HWDN), the free cash flow value is 351.50M.

All amounts in GBP

Operating Cash
437.4M
Capital Expenditure
-85.9M
Free Cash Flow
351.50M

Howden Joinery Group 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).

## HWDN Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Howden Joinery Group Plc (LSE:HWDN).

25 Dec 202126 Dec 202028 Dec 201929 Dec 2018
Net Income314.5M147.6M209M190.4M
Depreciation106.3M108.2M28M25.8M
Change To Netincome27.7M19.8M11.1M8.6M
Change To Account Receivables-39.2M2.3M-7.1M-48.2M
Change To Liabilities84.1M91.2M6.3M16.5M
Change To Inventory-46.6M-23.2M-5.5M-18M
Change To Operating Activities-18.5M-22.2M-26.9M-16.3M
Total Cash From Operating Activities437.4M329.5M221.4M163.2M
Capital Expenditures-85.9M-69.7M-61.1M-44.3M
Total Cashflows From Investing Activities-85.8M-69.1M-59.7M-43.5M
Dividends Paid-79.5M-79.5M-70.6M-68.3M
Net Borrowings-74.8M-77.2M-77.2M-77.2M
Other Cashflows From Financing Activities-10.8M-10.4M-900k100k
Total Cash From Financing Activities-267M-97.1M-125.6M-129.5M
Change In Cash84.6M163.3M36.1M-9.8M
Repurchase Of Stock-50M-9.8M-55.2M-62.2M
Issuance Of Stock2.2M300k1.1M900k