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