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