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