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 202231 Mar 202131 Mar 202031 Mar 2019
Net Income-56.8M453.4M106.8M363.4M
Depreciation418.2M422.3M400.5M393.2M
Change To Netincome532.5M-29.8M412.2M103.3M
Change To Account Receivables13.2M18.1M4.6M11.7M
Change To Liabilities24.7M2.5M-10.1M21.3M
Change To Inventory100k-1.7M-1.7M1.9M
Change To Operating Activities2.5M-5.4M-102M-62.5M
Total Cash From Operating Activities934.4M859.4M810.3M832.3M
Capital Expenditures-609M-610.4M-652.8M-622.3M
Other Cashflows From Investing Activities-11.2M9.4M74.1M31.4M
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-508.1M206.2M259.5M-100.2M
Total Cash From Financing Activities-809.7M-89.7M-27.8M-377.4M
Effect Of Exchange Rate1.5M1.5M1.5M1.5M
Change In Cash-513.5M220.4M188.6M-172.8M
Repurchase Of Stock-6.1M-4M-2.8M-2.8M