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).

## STJ 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 St. James's Place plc (STJ), the free cash flow value is 1.4262B.

All amounts in GBP

Operating Cash
1.43B
Capital Expenditure
-3.4M
Free Cash Flow
1.4262B

St. James's Place 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).

## STJ Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for St. James's Place plc (LSE:STJ).

31 Dec 202131 Dec 202031 Dec 201931 Dec 2018
Net Income286.7M262M146.6M173.5M
Depreciation25.3M27.3M23.9M9.7M
Change To Netincome277.4M-77.5M495.8M-434.8M
Change To Account Receivables-326.9M-443M-169.3M-330.3M
Change To Liabilities557M205M335.4M59.2M
Change To Operating Activities599.5M-102.1M-468.4M306.5M
Total Cash From Operating Activities1.43B-124.1M365.4M-215.1M
Capital Expenditures-3.4M-8M-17.3M-8.6M
Total Cashflows From Investing Activities-25.1M-49.2M-29.2M-12.8M
Dividends Paid-329.9M-107.1M-256M-242.7M
Net Borrowings79.6M-72.1M47.1M70.3M
Total Cash From Financing Activities-231.6M-179.8M-200.1M-175.6M
Effect Of Exchange Rate-100k-400k-100k500k
Change In Cash1.17B-353.5M136M-403M
Issuance Of Stock18.7M3.3M8.9M2.8M