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).

SVT 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 Severn Trent Plc (SVT), the free cash flow value is 280.20M.

All amounts in GBP

Operating Cash
Capital Expenditure
Free Cash Flow

Severn Trent 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).

SVT Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Severn Trent Plc (LSE:SVT).

31 Mar 2022 31 Mar 2021 31 Mar 2020 31 Mar 2019
Net Income -87.2M 212.2M 158.8M 315.3M
Depreciation 367.4M 347.7M 336.1M 316.1M
Change To Netincome 565M 225.6M 357.1M 243.8M
Change To Account Receivables -87.6M 51.6M -12.8M -60M
Change To Liabilities 99.9M 10.9M 32.6M 8.2M
Change To Inventory -1.2M -1.6M -8.4M -1.7M
Total Cash From Operating Activities 890.5M 878.5M 894.2M 851.5M
Capital Expenditures -610.3M -613.7M -777.2M -782.1M
Other Cashflows From Investing Activities -11.1M 2M 37.6M 800k
Total Cashflows From Investing Activities -648.2M -631.2M -801.5M -872.1M
Dividends Paid -254.5M -240.2M -228.4M -211.9M
Other Cashflows From Financing Activities -181.3M -190.1M -186.5M -162.4M
Total Cash From Financing Activities -178.6M -251.9M -83.7M 21.7M
Change In Cash 63.7M -4.6M 9M 1.1M
Issuance Of Stock 257.2M 11.8M 9.6M 11.1M