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 2022 31 Mar 2021 31 Mar 2020 31 Mar 2019
Net Income 230M 125.5M 154.7M 148.1M
Depreciation 43.9M 38.5M 32.1M 14.3M
Change To Netincome 27.2M 5.5M -2M 6.2M
Change To Account Receivables -96.5M -32.6M 10M -28.7M
Change To Liabilities 82.4M 35.5M -36M 14.6M
Change To Inventory -102.1M -4.4M -25.2M -50.7M
Change To Operating Activities -1.7M 1.6M -5.3M 5.9M
Total Cash From Operating Activities 203M 187.6M 147.1M 127.3M
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 -30.7M 27.2M
Total Cash From Financing Activities -94.6M 66M -95.5M -31.4M
Effect Of Exchange Rate 3.9M -11.8M 7M 3.9M
Change In Cash 72M 51.6M -16.3M 15.7M
Repurchase Of Stock -2.9M -1.6M -900k -2.3M
Issuance Of Stock 3M 179.5M 2M 2.6M