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).

## SSE 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 SSE plc (SSE), the free cash flow value is 354.30M.

All amounts in GBP

Operating Cash
1.63B
Capital Expenditure
-1.27B
Free Cash Flow
354.30M

SSE 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).

## SSE Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for SSE plc (LSE:SSE).

31 Mar 2022 31 Mar 2021 31 Mar 2020 31 Mar 2019
Net Income 3.03B 2.28B -59M 1.46B
Depreciation 667.6M 526M 504.6M 518.7M
Change To Netincome -2.17B -1.55B 823.9M -643.7M
Change To Account Receivables -625.6M 155.3M 155M -57.6M
Change To Liabilities 538.3M 420M -269.2M -116.8M
Change To Inventory 82.5M -71.7M 122.5M -3.4M
Change To Operating Activities 61.3M 36.1M -3M 23.8M
Total Cash From Operating Activities 1.63B 1.82B 1.3B 1.18B
Capital Expenditures -1.27B -985M -814.1M -1.23B
Investments 142.1M 182.5M 182.5M 182.5M
Other Cashflows From Investing Activities -652.8M -296.3M -186.2M -239.8M
Total Cashflows From Investing Activities -744.9M 443.7M -1.01B -722.5M
Dividends Paid -557.3M -844M -649.5M -736.5M
Net Borrowings -454M -520.8M 352.1M 582.9M
Other Cashflows From Financing Activities 11.2M 241M 3.7M -3.6M
Total Cash From Financing Activities -1.43B -825.3M -650.2M -159.6M
Change In Cash -550.9M 1.44B -362.2M 199.4M
Repurchase Of Stock -440.1M -762.9M -366.6M -3.6M
Issuance Of Stock 6.3M 1.06B 10.1M 1.2M