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 264.80M.

All amounts in GBP

Operating Cash
878.5M
Capital Expenditure
-613.7M
Free Cash Flow
264.80M

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 202131 Mar 202031 Mar 201931 Mar 2018
Net Income212.2M158.8M315.3M252.8M
Depreciation347.7M336.1M316.1M308.9M
Change To Netincome225.6M357.1M243.8M237.1M
Change To Account Receivables51.6M-12.8M-60M-58.4M
Change To Liabilities10.9M32.6M8.2M8.6M
Change To Inventory-1.6M-8.4M-1.7M-2.9M
Total Cash From Operating Activities878.5M894.2M851.5M766.8M
Capital Expenditures-613.7M-777.2M-782.1M-608.5M
Other Cashflows From Investing Activities2M37.6M800k41.7M
Total Cashflows From Investing Activities-631.2M-801.5M-872.1M-586.3M
Dividends Paid-240.2M-228.4M-211.9M-197M
Net Borrowings166.6M321.6M386M234.8M
Other Cashflows From Financing Activities-190.1M-186.5M-162.4M-228.5M
Total Cash From Financing Activities-251.9M-83.7M21.7M-185.1M
Change In Cash-4.6M9M1.1M-6.1M
Issuance Of Stock11.8M9.6M11.1M5.6M