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).

SGE 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 The Sage Group plc (SGE), the free cash flow value is 273.00M.

All amounts in GBP

Operating Cash
Capital Expenditure
Free Cash Flow

The Sage 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).

SGE Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for The Sage Group plc (LSE:SGE).

30 Sep 2022 30 Sep 2021 30 Sep 2020 30 Sep 2019
Net Income 260M 285M 310M 266M
Depreciation 56M 48M 61M 38M
Change To Netincome 5M -97M -76M 36M
Change To Account Receivables -50M -35M 26M 18M
Change To Liabilities -28M 142M 54M 84M
Total Cash From Operating Activities 285M 376M 406M 472M
Capital Expenditures -12M -39M -24M -27M
Other Cashflows From Investing Activities 1M 1M 3M 3M
Total Cashflows From Investing Activities -284M 62M 179M 7M
Dividends Paid -183M -189M -186M -181M
Net Borrowings 331M -159M 97M -180M
Other Cashflows From Financing Activities -1M -1M -1M -79M
Total Cash From Financing Activities -127M -694M -88M -437M
Effect Of Exchange Rate 48M -25M -21M 8M
Change In Cash -78M -281M 476M 50M
Repurchase Of Stock -281M -353M -7M -7M
Issuance Of Stock 7M 8M 9M 3M