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).

RMV 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 Rightmove plc (RMV), the free cash flow value is 194.32M.

All amounts in GBP

Operating Cash
195.02M
Capital Expenditure
-700k
Free Cash Flow
194.32M

Rightmove 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).

RMV Cash Flow Statement History

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

31 Dec 2021 31 Dec 2020 31 Dec 2019 31 Dec 2018
Net Income 183.09M 109.78M 173.09M 160.46M
Depreciation 3.9M 3.71M 3.23M 3.45M
Change To Netincome 5.03M -17.71M 8.37M 9.47M
Change To Account Receivables 552k 602k -453k -5.61M
Change To Liabilities 4.89M -1.11M -9k -782k
Change To Operating Activities -2.99M 465k -371k 46k
Total Cash From Operating Activities 195.02M 96.29M 184.22M 167.44M
Capital Expenditures -700k -2.31M -543k -1.61M
Investments -5M 4.14M 4.14M 4.14M
Other Cashflows From Investing Activities 23k 160k 259k 118k
Total Cashflows From Investing Activities -5.7M 824k -16.15M -1.62M
Dividends Paid -64.45M -64.45M -59.86M -54.98M
Net Borrowings -2.46M -2.16M -1.53M -1.53M
Other Cashflows From Financing Activities -1.22M -209k -619k -778k
Total Cash From Financing Activities -243.02M -32.54M -151.81M -170.9M
Change In Cash -53.7M 64.57M 16.27M -5.08M
Repurchase Of Stock -175.65M -30.89M -90.69M -114.21M
Issuance Of Stock 766k 716k 898k 601k