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).

SMDS 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 DS Smith Plc (SMDS), the free cash flow value is 420.00M.

All amounts in GBP

Operating Cash
Capital Expenditure
Free Cash Flow

DS Smith 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).

SMDS Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for DS Smith Plc (LSE:SMDS).

30 Apr 202130 Apr 202030 Apr 201930 Apr 2018
Net Income194M527M274M259M
Change To Netincome-62M-300M-33M-55M
Change To Account Receivables-75M86M3M-18M
Change To Liabilities276M-161M-8M81M
Change To Inventory-28M45M-7M-81M
Total Cash From Operating Activities751M636M532M436M
Capital Expenditures-331M-376M-303M-328M
Other Cashflows From Investing Activities6M484M-4M-6M
Total Cashflows From Investing Activities-391M178M-1.79B-933M
Net Borrowings-129M-333M471M514M
Other Cashflows From Financing Activities-16M-9M-42M-2M
Total Cash From Financing Activities-142M-562M1.25B638M
Effect Of Exchange Rate-4M-4M-4M4M
Change In Cash214M252M-15M145M
Issuance Of Stock3M2M1.01B283M