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