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 202131 Dec 202031 Dec 201931 Dec 2018
Net Income183.09M109.78M173.09M160.46M
Depreciation3.9M3.71M3.23M3.45M
Change To Netincome5.03M-17.71M8.37M9.47M
Change To Account Receivables552k602k-453k-5.61M
Change To Liabilities4.89M-1.11M-9k-782k
Change To Operating Activities-2.99M465k-371k46k
Total Cash From Operating Activities195.02M96.29M184.22M167.44M
Capital Expenditures-700k-2.31M-543k-1.61M
Investments-5M4.14M4.14M4.14M
Other Cashflows From Investing Activities23k160k259k118k
Total Cashflows From Investing Activities-5.7M824k-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-53.7M64.57M16.27M-5.08M
Repurchase Of Stock-175.65M-30.89M-90.69M-114.21M
Issuance Of Stock766k716k898k601k