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 490.00M.

All amounts in GBP

Operating Cash
921M
Capital Expenditure
-431M
Free Cash Flow
490.00M

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 2022 30 Apr 2021 30 Apr 2020 30 Apr 2019
Net Income 280M 194M 527M 274M
Depreciation 412M 423M 417M 303M
Change To Netincome -2M -62M -300M -33M
Change To Account Receivables -449M -75M 86M 3M
Change To Liabilities 864M 276M -161M -8M
Change To Inventory -200M -28M 45M -7M
Total Cash From Operating Activities 921M 751M 636M 532M
Capital Expenditures -431M -331M -376M -303M
Total Cashflows From Investing Activities -403M -391M 178M -1.79B
Dividends Paid -166M -166M -222M -187M
Net Borrowings -268M -129M -333M 471M
Other Cashflows From Financing Activities -56M -16M -9M -42M
Total Cash From Financing Activities -483M -142M -562M 1.25B
Effect Of Exchange Rate -8M -4M -4M -4M
Change In Cash 27M 214M 252M -15M
Issuance Of Stock 7M 3M 2M 1.01B