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
-914.29M
Capital Expenditure
-
Free Cash Flow
-914.29M

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