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 457.00M.

All amounts in GBP

Operating Cash
535M
Capital Expenditure
-78M
Free Cash Flow
457.00M

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 202131 Jul 202031 Jul 201931 Jul 2018
Net Income284M265M225M277M
Depreciation125M131M79M64M
Change To Netincome8M-11M137M89M
Change To Account Receivables-10M80M-105M-17M
Change To Liabilities36M47M66M21M
Change To Inventory66M-73M-48M-17M
Change To Operating Activities-30M1M-26M-36M
Total Cash From Operating Activities535M429M346M405M
Capital Expenditures-78M-61M-79M-68M
Investments7M7M2M-1M
Other Cashflows From Investing Activities-14M-11M22M22M
Total Cashflows From Investing Activities-205M-144M-367M-145M
Dividends Paid-185M-126M-178M-172M
Net Borrowings-44M-47M-194M-135M
Other Cashflows From Financing Activities4M1M-2M3M
Total Cash From Financing Activities-239M-188M-391M-316M
Effect Of Exchange Rate-24M-26M10M-8M
Change In Cash39M77M-428M-64M
Repurchase Of Stock-16M-18M-19M-15M
Issuance Of Stock2M2M2M3M