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 -57.96M.

All amounts in GBP

Operating Cash
-57.96M
Capital Expenditure
-
Free Cash Flow
-57.96M

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 202131 Mar 202031 Mar 201931 Mar 2018
Net Income9.21B973.06M883.28M1.21B
Change To Netincome-9.28B-1.01B-907.99M-1.23B
Change To Account Receivables5.49M596k1.45M4.29M
Change To Liabilities
Total Cash From Operating Activities-57.96M-31.71M-23.26M-9.73M
Investments329.92M2.13M-540.97M-137.76M
Total Cashflows From Investing Activities329.92M2.13M-540.97M-137.76M
Dividends Paid-48.46M-46.09M-43.99M-41.67M
Net Borrowings364.52M188.22M197.99M4.15M
Total Cash From Financing Activities-78.89M29.87M556.81M112.28M
Effect Of Exchange Rate-19.47M2.65M8.03M-6.46M
Change In Cash173.6M2.94M613k-41.67M
Repurchase Of Stock-588.5M-166.74M-67k-62.88M
Issuance Of Stock193.56M54.48M402.89M212.69M