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 1.1448B.

All amounts in GBP

Operating Cash
1.23B
Capital Expenditure
-89.4M
Free Cash Flow
1.1448B

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 2021 31 Dec 2020 31 Dec 2019 31 Dec 2018
Net Income 623.8M 486M 495.7M 504.7M
Depreciation 68.6M 84M 71.5M 21.8M
Change To Netincome -24.1M -23.3M 35.6M 99.6M
Change To Account Receivables -10.5M -6.9M -101M -36.2M
Change To Liabilities 149.4M -26.7M -57.5M 12M
Change To Operating Activities 366.3M 270.9M 520.5M -117.4M
Total Cash From Operating Activities 1.23B 832.5M 1B 513.9M
Capital Expenditures -89.4M -92.8M -142.9M -204.1M
Investments 213M 247.5M 114.5M -94.5M
Other Cashflows From Investing Activities 12.5M 14.9M 22.5M 27.8M
Total Cashflows From Investing Activities 117.4M 151.3M -158.3M -402.6M
Dividends Paid -318.6M -311.7M -312.3M -311.7M
Net Borrowings -47.5M -44.4M -26.5M -26.5M
Other Cashflows From Financing Activities 11.7M -16.7M -47.2M -2.1M
Total Cash From Financing Activities -429.7M -431.1M -467M -388.7M
Effect Of Exchange Rate -18.8M 30.3M -25.4M 39.5M
Change In Cash 903.1M 583M 351.3M -237.9M
Repurchase Of Stock -75.3M -58.3M -81M -74.9M