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).

KGF 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 Kingfisher plc (KGF), the free cash flow value is 781.00M.

All amounts in GBP

Operating Cash
1.18B
Capital Expenditure
-397M
Free Cash Flow
781.00M

Kingfisher 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).

KGF Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Kingfisher plc (LSE:KGF).

31 Jan 202231 Jan 202131 Jan 202031 Jan 2019
Net Income843M592M8M193M
Depreciation474M468M474M476M
Change To Netincome59M198M423M347M
Change To Account Receivables-23M17M53M142M
Change To Liabilities158M267M-91M-197M
Change To Inventory-359M86M-65M95M
Change To Operating Activities-55M-46M24M-4M
Total Cash From Operating Activities1.18B1.65B897M1.11B
Capital Expenditures-397M-281M-342M-332M
Other Cashflows From Investing Activities-7M4M11M15M
Total Cashflows From Investing Activities-385M-207M-138M-266M
Dividends Paid-254M-254M-227M-231M
Net Borrowings-438M-371M-320M-308M
Other Cashflows From Financing Activities-157M-178M-200M-156M
Total Cash From Financing Activities-1.03B-562M-757M-833M
Effect Of Exchange Rate-90M60M-36M-13M
Change In Cash-327M941M-34M-1M
Repurchase Of Stock-186M-14M-10M-140M
Issuance Of Stock5M1M1M2M