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).

MRO 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 Melrose Industries PLC (MRO), the free cash flow value is -67.00M.

All amounts in GBP

Operating Cash
Capital Expenditure
Free Cash Flow

Melrose Industries PLC has a negative 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).

MRO Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Melrose Industries PLC (LSE:MRO).

31 Dec 2022 31 Dec 2021 31 Dec 2020 31 Dec 2019
Net Income -308M 833M -536M -60M
Depreciation 814M 826M 863M 968M
Change To Netincome -174M -1.51B 15M -281M
Change To Account Receivables -268M 79M 269M 72M
Change To Liabilities 209M 14M -71M -2M
Change To Inventory -119M -31M 173M -12M
Total Cash From Operating Activities 204M 263M 764M 749M
Capital Expenditures -271M -220M -253M -465M
Investments -3M -10M -2M -50M
Other Cashflows From Investing Activities -47M 43M 28M -39M
Total Cashflows From Investing Activities 192M 2.51B -248M -415M
Dividends Paid -77M -69M -69M -231M
Net Borrowings -17M -1.61B -661M -176M
Other Cashflows From Financing Activities -1M -59M -15M -8M
Total Cash From Financing Activities -599M -2.47B -676M -415M
Effect Of Exchange Rate 27M 27M 3M -17M
Change In Cash -176M 308M -157M -98M
Repurchase Of Stock -504M -504M -504M -504M