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).

PSH 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 Pershing Square Holdings, Ltd. (PSH), the free cash flow value is -914.29M.

All amounts in USD

Operating Cash
Capital Expenditure
Free Cash Flow

Pershing Square Holdings, Ltd. 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).

PSH Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Pershing Square Holdings, Ltd. (LSE:PSH).

31 Dec 202131 Dec 202031 Dec 201931 Dec 2018
Net Income2.44B3.7B2.15B-109.14M
Change To Netincome-20.24k5.35M8.59M-70.75k
Change To Account Receivables-1.43M-1.74M-353.78k11.75M
Change To Liabilities-169.68M692.16M52.41M-90.01M
Change To Operating Activities751.18M-701.42M-69.81M257.1M
Total Cash From Operating Activities-914.29M336.58M882.79M-580M
Dividends Paid-79.65M-81.14M-87.75M-87.75M
Net Borrowings1.28B700M400M400M
Other Cashflows From Financing Activities-394.81M-7.47M-5.14M-5.14M
Total Cash From Financing Activities802.43M320.22M138.81M-300.86M
Change In Cash-111.86M656.79M1.02B-880.86M
Repurchase Of Stock-573-291.18M-168.31M-300.86M