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).

## NXT 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 NEXT plc (NXT), the free cash flow value is 727.80M.

All amounts in GBP

NEXT 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).

## NXT Cash Flow Statement History

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

29 Jan 2022 | 30 Jan 2021 | 25 Jan 2020 | 26 Jan 2019 | |
---|---|---|---|---|

Net Income | 677.5M | 286.7M | 610.2M | 599.1M |

Depreciation | 218M | 255.3M | 259.5M | 258.4M |

Change To Netincome | 99.5M | 116.2M | 120.4M | 109.5M |

Change To Account Receivables | -165.4M | 205.4M | -34M | -97.6M |

Change To Liabilities | 235.2M | -29.5M | -3.3M | 35.8M |

Change To Inventory | -96.5M | -9.6M | -25.6M | -36.2M |

Total Cash From Operating Activities | 971.4M | 824.8M | 927.2M | 868.8M |

Capital Expenditures | -243.6M | -144.6M | -136.4M | -123.2M |

Investments | -34.3M | -2.4M | -2.4M | -3M |

Other Cashflows From Investing Activities | 4.7M | 28.4M | 28.4M | 28.4M |

Total Cashflows From Investing Activities | -292.5M | -130.9M | -139.1M | -125.9M |

Net Borrowings | -483M | -85M | -127.4M | -26.1M |

Other Cashflows From Financing Activities | -78.4M | -101.1M | -100.7M | -105.5M |

Total Cash From Financing Activities | -993.4M | -231.7M | -769.2M | -718.4M |

Effect Of Exchange Rate | -400k | -300k | -300k | 1M |

Change In Cash | -314.9M | 461.9M | 18.9M | 25.5M |

Repurchase Of Stock | -160M | -208.3M | -394.4M | -386.9M |

Issuance Of Stock | 72.5M | 162.7M | 66.9M | 15.8M |