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).

JMAT 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 Johnson Matthey Plc (JMAT), the free cash flow value is 247.00M.

All amounts in GBP

Operating Cash
605M
Capital Expenditure
-358M
Free Cash Flow
247.00M

Johnson Matthey 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).

JMAT Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Johnson Matthey Plc (LSE:JMAT).

31 Mar 2022 31 Mar 2021 31 Mar 2020 31 Mar 2019
Net Income -101M 205M 255M 413M
Depreciation 158M 168M 165M 156M
Change To Netincome 563M 137M 172M -2M
Change To Account Receivables 588M -430M -541M -246M
Change To Liabilities -783M 607M 1.11B 416M
Change To Inventory 123M 19M -575M -394M
Change To Operating Activities 25M 41M -6M -24M
Total Cash From Operating Activities 605M 769M 598M 334M
Capital Expenditures -358M -304M -332M -215M
Other Cashflows From Investing Activities 33M 71M 105M 62M
Total Cashflows From Investing Activities -260M -291M -331M -237M
Dividends Paid -139M -99M -167M -156M
Net Borrowings -145M 56M -1M 243M
Other Cashflows From Financing Activities -111M -159M -202M -110M
Total Cash From Financing Activities -550M -202M -370M -23M
Effect Of Exchange Rate 6M -4M -2M -2M
Change In Cash -199M 272M -105M 74M
Repurchase Of Stock -155M -155M -155M -155M