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).

JD 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 JD Sports Fashion plc (JD), the free cash flow value is 961.50M.

All amounts in GBP

Operating Cash
1.06B
Capital Expenditure
-101.1M
Free Cash Flow
961.50M

JD Sports Fashion 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).

JD Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for JD Sports Fashion plc (LSE:JD).

30 Jan 202101 Feb 202002 Feb 201903 Feb 2018
Net Income224.3M246.1M261.8M231.9M
Depreciation461.8M427.5M100.4M62.3M
Change To Netincome93.6M121.6M32.9M29.2M
Change To Account Receivables46.2M-13M-22.5M-22.1M
Change To Liabilities150.8M58.1M21.2M110.7M
Change To Inventory63.5M-9.5M-26.2M-79M
Total Cash From Operating Activities1.06B854M377.6M338.8M
Capital Expenditures-101.1M-146.6M-172.6M-145.5M
Other Cashflows From Investing Activities-4.1M-2M-2.9M-5.5M
Total Cashflows From Investing Activities-334.7M-261.7M-550.8M-204.2M
Net Borrowings-233.6M-353.4M86.4M-8.6M
Other Cashflows From Financing Activities-6.1M-1.3M5.7M-8.8M
Total Cash From Financing Activities-239.7M-371.4M76.2M-32.6M
Effect Of Exchange Rate200k1.7M100k-1.8M
Change In Cash488.4M222.6M-96.9M100.2M