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).

SPX 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 Spirax-Sarco Engineering plc (SPX), the free cash flow value is 220.60M.

All amounts in GBP

Operating Cash
Capital Expenditure
Free Cash Flow

Spirax-Sarco Engineering 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).

SPX Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Spirax-Sarco Engineering plc (LSE:SPX).

31 Dec 202131 Dec 202031 Dec 201931 Dec 2018
Net Income234.6M173.6M166.6M223.1M
Change To Netincome9.3M-3.3M9.9M-46M
Change To Account Receivables-71.3M15.1M2.4M-16M
Change To Liabilities59.5M-8.7M2.3M8.1M
Change To Inventory-26.7M3.8M-23.8M-15.5M
Change To Operating Activities-1M3.3M-2.4M800k
Total Cash From Operating Activities273.4M259.2M227.4M212.6M
Capital Expenditures-52.8M-42M-50.9M-33.5M
Other Cashflows From Investing Activities3.4M1.4M1.5M1.1M
Total Cashflows From Investing Activities-58.7M-51.1M-175.4M18.4M
Dividends Paid-90.7M-82.2M-75.9M-67M
Net Borrowings-89.2M-48.9M38.4M-111.5M
Other Cashflows From Financing Activities-8.8M-8.9M-7.4M-8M
Total Cash From Financing Activities-213.3M-152.5M-57.5M-191.4M
Effect Of Exchange Rate-6.4M100k-12.9M-4.5M
Change In Cash-5M55.7M-18.4M35.1M
Repurchase Of Stock-26.1M-14.5M-14.7M-6.7M
Issuance Of Stock1.5M2M2.1M1.8M