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).

## UU 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 United Utilities Group PLC (UU), the free cash flow value is 325.40M.

All amounts in GBP

Operating Cash
934.4M
Capital Expenditure
-609M
Free Cash Flow
325.40M

United Utilities Group 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).

## UU Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for United Utilities Group PLC (LSE:UU).

31 Mar 2022 31 Mar 2021 31 Mar 2020 31 Mar 2019
Net Income -56.8M 453.4M 106.8M 363.4M
Depreciation 418.2M 422.3M 400.5M 393.2M
Change To Netincome 532.5M -29.8M 412.2M 103.3M
Change To Account Receivables 13.2M 18.1M 4.6M 11.7M
Change To Liabilities 24.7M 2.5M -10.1M 21.3M
Change To Inventory 100k -1.7M -1.7M 1.9M
Change To Operating Activities 2.5M -5.4M -102M -62.5M
Total Cash From Operating Activities 934.4M 859.4M 810.3M 832.3M
Capital Expenditures -609M -610.4M -652.8M -622.3M
Other Cashflows From Investing Activities -11.2M 9.4M 74.1M 31.4M
Total Cashflows From Investing Activities -639.7M -549.3M -593.9M -627.7M
Dividends Paid -295.5M -291.9M -284.5M -274.4M
Net Borrowings -508.1M 206.2M 259.5M -100.2M
Total Cash From Financing Activities -809.7M -89.7M -27.8M -377.4M
Effect Of Exchange Rate 1.5M 1.5M 1.5M 1.5M
Change In Cash -513.5M 220.4M 188.6M -172.8M
Repurchase Of Stock -6.1M -4M -2.8M -2.8M