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).

## SMT 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 Scottish Mortgage Investment Trust PLC (SMT), the free cash flow value is -85.91M.

All amounts in GBP

Operating Cash
-85.91M
Capital Expenditure
-
Free Cash Flow
-85.91M

Scottish Mortgage Investment Trust PLC has a negative 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).

## SMT Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Scottish Mortgage Investment Trust PLC (LSE:SMT).

31 Mar 2022 31 Mar 2021 31 Mar 2020 31 Mar 2019
Net Income -2.54B 9.21B 973.06M 883.28M
Change To Netincome 2.46B -9.28B -1.01B -907.99M
Change To Account Receivables -4.05M 5.49M 596k 1.45M
Change To Liabilities
Total Cash From Operating Activities -85.91M -57.96M -31.71M -23.26M
Investments -1.03B 329.92M 2.13M -540.97M
Total Cashflows From Investing Activities -1.03B 329.92M 2.13M -540.97M
Dividends Paid -49.77M -48.46M -46.09M -43.99M
Net Borrowings 843.67M 364.52M 188.22M 197.99M
Total Cash From Financing Activities 1.13B -78.89M 29.87M 556.81M
Effect Of Exchange Rate 9.26M -19.47M 2.65M 8.03M
Change In Cash 17.83M 173.6M 2.94M 613k
Repurchase Of Stock -183.01M -588.5M -166.74M -67k
Issuance Of Stock 518.25M 193.56M 54.48M 402.89M