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).

SKG 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 Smurfit Kappa Group Plc (SKG), the free cash flow value is 392.00M.

All amounts in EUR

Operating Cash
986M
Capital Expenditure
-594M
Free Cash Flow
392.00M

Smurfit Kappa 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).

SKG Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Smurfit Kappa Group Plc (LSE:SKG).

31 Dec 202131 Dec 202031 Dec 201931 Dec 2018
Net Income679M545M476M-646M
Depreciation538M542M528M406M
Change To Netincome66M63M41M1.38B
Change To Account Receivables-492M22M52M-99M
Change To Liabilities624M59M-44M90M
Change To Inventory-246M14M40M-84M
Change To Operating Activities-198M-13M57M-29M
Total Cash From Operating Activities986M1.25B1.16B1.03B
Capital Expenditures-594M-493M-612M-528M
Other Cashflows From Investing Activities5M13M3M5M
Total Cashflows From Investing Activities-1.01B-498M-735M-1.05B
Dividends Paid-302M-260M-238M-213M
Net Borrowings313M-420M-263M167M
Other Cashflows From Financing Activities-3M-16M-107M-14M
Total Cash From Financing Activities-14M-64M-629M-70M
Effect Of Exchange Rate-12M19M-17M-27M
Change In Cash-49M704M-218M-113M
Repurchase Of Stock-22M-16M-23M-10M