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).

REL 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 RELX PLC (REL), the free cash flow value is 1.988B.

All amounts in GBP

Operating Cash
2.02B
Capital Expenditure
-28M
Free Cash Flow
1.988B

RELX 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).

REL Cash Flow Statement History

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

31 Dec 202131 Dec 202031 Dec 201931 Dec 2018
Net Income1.47B1.22B1.5B1.42B
Depreciation429M524M434M426M
Change To Netincome-31M-357M-48M-19M
Change To Account Receivables-103M149M-116M-89M
Change To Liabilities-32M-245M79M27M
Change To Inventory-13M-18M-14M-7M
Total Cash From Operating Activities2.02B1.6B2.09B1.99B
Capital Expenditures-28M-43M-47M-56M
Investments-8M-2M-8M-13M
Other Cashflows From Investing Activities20M31M34M30M
Total Cashflows From Investing Activities-384M-1.17B-733M-1.27B
Dividends Paid-920M-880M-842M-796M
Net Borrowings-724M568M108M799M
Other Cashflows From Financing Activities7M9M13M6M
Total Cash From Financing Activities-1.61B-474M-1.33B-713M
Effect Of Exchange Rate-1M1M-3M2M
Change In Cash25M-50M24M3M
Repurchase Of Stock-1M-187M-637M-743M
Issuance Of Stock32M16M29M21M