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).

ITRK 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 Intertek Group plc (ITRK), the free cash flow value is 453.10M.

All amounts in GBP

Operating Cash
550.2M
Capital Expenditure
-97.1M
Free Cash Flow
453.10M

Intertek 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).

ITRK Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Intertek Group plc (LSE:ITRK).

31 Dec 2021 31 Dec 2020 31 Dec 2019 31 Dec 2018
Net Income 288.1M 247.3M 313.1M 284.4M
Depreciation 179.9M 184.7M 185.3M 100.8M
Change To Netincome 34.8M 21.3M 39.4M 49.6M
Change To Account Receivables -29.2M 52.9M -25.6M -16M
Change To Liabilities 62M 36.8M 40.7M 35.2M
Change To Inventory 600k 3.5M -1.5M 1M
Change To Operating Activities -4.7M -5.1M -3.9M -9M
Total Cash From Operating Activities 550.2M 558.8M 562.8M 458.5M
Capital Expenditures -97.1M -79.8M -116.8M -88.8M
Other Cashflows From Investing Activities 1.5M 1.1M 1.2M 1.8M
Total Cashflows From Investing Activities -586.4M -71.6M -128.5M -495.7M
Dividends Paid -170.6M -170.4M -163.2M -128.3M
Net Borrowings 328.5M -299.2M -181M 265.5M
Other Cashflows From Financing Activities -17M -18.6M -24.3M -18.2M
Total Cash From Financing Activities 122.8M -508.9M -403.2M 92.4M
Effect Of Exchange Rate -6M -7.9M -21.3M 12.1M
Change In Cash 80.6M -29.6M 9.8M 67.3M
Repurchase Of Stock -18.1M -20.7M -34.7M -26.6M