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).

## MGGT 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 Meggitt PLC (MGGT), the free cash flow value is 38.90M.

All amounts in GBP

Operating Cash
105.3M
Capital Expenditure
-66.4M
Free Cash Flow
38.90M

Meggitt 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).

## MGGT Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Meggitt PLC (LSE:MGGT).

31 Dec 202131 Dec 202031 Dec 201931 Dec 2018
Net Income31.2M-314.2M222.6M179M
Depreciation134.8M141.1M164.5M145.1M
Change To Netincome-85.4M254.1M-23.6M-37.3M
Change To Account Receivables-46.2M110.7M110.7M-800k
Change To Liabilities29M-144.5M39M
Change To Inventory-32.8M39.8M39.8M-33.5M
Change To Operating Activities18.8M14M-27.1M-37.7M
Total Cash From Operating Activities105.3M154.2M366.9M295.3M
Capital Expenditures-66.4M-80.8M-77.2M-52.6M
Investments-900k-7.6M-7.6M-7.6M
Other Cashflows From Investing Activities7.4M2.1M2.1M2.1M
Total Cashflows From Investing Activities-47.8M-22M-49.7M-96M
Net Borrowings-44.2M-102.6M-228.8M4.4M
Other Cashflows From Financing Activities-1.9M1.1M18.9M18.9M
Total Cash From Financing Activities-44.8M-101.2M-340.3M-142.4M
Effect Of Exchange Rate-500k-7.7M-3.5M6.5M
Change In Cash12.2M23.3M-26.6M63.4M
Issuance Of Stock1.3M300k300k300k