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 832.20M.

All amounts in GBP

Operating Cash
Capital Expenditure
Free Cash Flow

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 202131 Mar 202031 Mar 201931 Mar 2018
Net Income2.28B-59M1.46B920.1M
Change To Netincome-1.55B823.9M-643.7M409.1M
Change To Account Receivables155.3M155M-57.6M-313.1M
Change To Liabilities420M-269.2M-116.8M-97.8M
Change To Inventory-71.7M122.5M-3.4M43.2M
Change To Operating Activities36.1M-3M23.8M-7.9M
Total Cash From Operating Activities1.82B1.3B1.18B1.73B
Capital Expenditures-985M-814.1M-1.23B-1.31B
Other Cashflows From Investing Activities-296.3M-186.2M-239.8M-200k
Total Cashflows From Investing Activities443.7M-1.01B-722.5M-1.41B
Dividends Paid-844M-649.5M-736.5M-693M
Net Borrowings-520.8M352.1M582.9M683.6M
Other Cashflows From Financing Activities241M3.7M-3.6M1.4M
Total Cash From Financing Activities-825.3M-650.2M-159.6M-1.52B
Change In Cash1.44B-362.2M199.4M-1.19B
Repurchase Of Stock-762.9M-366.6M-3.6M-1.52B
Issuance Of Stock1.06B10.1M1.2M16.6M