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).

SDR 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 Schroders plc (SDR), the free cash flow value is 868.50M.

All amounts in GBP

Operating Cash
Capital Expenditure
Free Cash Flow

Schroders 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).

SDR Cash Flow Statement History

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

31 Dec 2022 31 Dec 2021 31 Dec 2020 31 Dec 2019
Net Income 486.2M 623.8M 486M 495.7M
Depreciation 75.6M 68.6M 84M 71.5M
Change To Netincome 96.3M -24.1M -23.3M 35.6M
Change To Account Receivables 68.9M -10.5M -6.9M -101M
Change To Liabilities -159.6M 149.4M -26.7M -57.5M
Change To Operating Activities 339.2M 366.3M 270.9M 520.5M
Total Cash From Operating Activities 972.8M 1.23B 832.5M 1B
Capital Expenditures -104.3M -89.4M -92.8M -142.9M
Investments 100.7M 213M 247.5M 114.5M
Other Cashflows From Investing Activities 7.3M 12.5M 14.9M 22.5M
Total Cashflows From Investing Activities -603.8M 117.4M 151.3M -158.3M
Dividends Paid -332.1M -318.6M -311.7M -312.3M
Net Borrowings -51.3M -47.5M -44.4M -26.5M
Other Cashflows From Financing Activities -29.7M 11.7M -16.7M -47.2M
Total Cash From Financing Activities -533.3M -429.7M -431.1M -467M
Effect Of Exchange Rate 90.6M -18.8M 30.3M -25.4M
Change In Cash -73.7M 903.1M 583M 351.3M
Repurchase Of Stock -120.2M -75.3M -58.3M -81M