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
273.4M
Capital Expenditure
-52.8M
Free Cash Flow
220.60M

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
Depreciation61.1M67.6M59.5M46.5M
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