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).

RS1 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 RS Group plc (RS1), the free cash flow value is 160.50M.

All amounts in GBP

Operating Cash
203M
Capital Expenditure
-42.5M
Free Cash Flow
160.50M

RS Group 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).

RS1 Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for RS Group plc (LSE:RS1).

31 Mar 202231 Mar 202131 Mar 202031 Mar 2019
Net Income230M125.5M154.7M148.1M
Depreciation43.9M38.5M32.1M14.3M
Change To Netincome27.2M5.5M-2M6.2M
Change To Account Receivables-96.5M-32.6M10M-28.7M
Change To Liabilities82.4M35.5M-36M14.6M
Change To Inventory-102.1M-4.4M-25.2M-50.7M
Change To Operating Activities-1.7M1.6M-5.3M5.9M
Total Cash From Operating Activities203M187.6M147.1M127.3M
Capital Expenditures-42.5M-54.7M-74.7M-50.8M
Total Cashflows From Investing Activities-40.3M-190.2M-74.9M-84.1M
Dividends Paid-76.2M-71.2M-68.5M-58.9M
Net Borrowings-18.5M-40.7M-30.7M27.2M
Total Cash From Financing Activities-94.6M66M-95.5M-31.4M
Effect Of Exchange Rate3.9M-11.8M7M3.9M
Change In Cash72M51.6M-16.3M15.7M
Repurchase Of Stock-2.9M-1.6M-900k-2.3M
Issuance Of Stock3M179.5M2M2.6M