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).

SMIN 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 Smiths Group plc (SMIN), the free cash flow value is 221.00M.

All amounts in GBP

Operating Cash
Capital Expenditure
Free Cash Flow

Smiths 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).

SMIN Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Smiths Group plc (LSE:SMIN).

31 Jul 2022 31 Jul 2021 31 Jul 2020 31 Jul 2019
Net Income 1.03B 284M 265M 225M
Depreciation 119M 125M 131M 79M
Change To Netincome 135M 8M -11M 137M
Change To Account Receivables -83M -10M 80M -105M
Change To Liabilities 129M 36M 47M 66M
Change To Inventory -169M 66M -73M -48M
Change To Operating Activities 21M -30M 1M -26M
Total Cash From Operating Activities 279M 535M 429M 346M
Capital Expenditures -58M -78M -61M -79M
Total Cashflows From Investing Activities 1.25B -205M -144M -367M
Dividends Paid -150M -185M -126M -178M
Net Borrowings -333M -44M -47M -194M
Other Cashflows From Financing Activities 22M 4M 1M -2M
Total Cash From Financing Activities -985M -239M -188M -391M
Effect Of Exchange Rate 62M -24M -26M 10M
Change In Cash 650M 39M 77M -428M
Repurchase Of Stock -527M -16M -18M -19M
Issuance Of Stock 3M 2M 2M 2M