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).

SHEL 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 Shell plc (SHEL), the free cash flow value is 45.814B.

All amounts in USD

Operating Cash
Capital Expenditure
Free Cash Flow

Shell 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).

SHEL Cash Flow Statement History

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

31 Dec 2022 31 Dec 2021 31 Dec 2020 31 Dec 2019
Net Income 42.31B 20.1B -21.68B 15.84B
Depreciation 18.12B 25.03B 46.74B 29.45B
Change To Netincome 13.42B 10.34B 4.44B 1.66B
Change To Account Receivables -8.99B -20.57B 9.62B -921M
Change To Liabilities 11.91B 17.52B -9.49B -1.22B
Change To Inventory -8.36B -7.32B 4.48B -2.63B
Total Cash From Operating Activities 68.41B 45.1B 34.1B 42.18B
Capital Expenditures -22.6B -19B -16.59B -22.97B
Investments -1.6B 183M 279M 2.12B
Other Cashflows From Investing Activities 326M -177M 539M 269M
Total Cashflows From Investing Activities -22.45B -4.76B -13.28B -15.78B
Dividends Paid -7.41B -6.25B -7.42B -15.2B
Net Borrowings -7.87B -19.73B 5.58B -3.42B
Other Cashflows From Financing Activities -7.65B -5.51B -3.3B -5.23B
Total Cash From Financing Activities -41.95B -34.66B -7.22B -35.21B
Effect Of Exchange Rate -736M -539M 172M 124M
Change In Cash 3.28B 5.14B 13.78B -8.69B
Repurchase Of Stock -19.03B -3.17B -2.08B -11.36B