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).

SRIRAM 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 (SRIRAM), the free cash flow value is -60.26M.

All amounts in INR

Operating Cash
-60,186,950
Capital Expenditure
-77,970
Free Cash Flow
-60.26M

has a negative 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).

SRIRAM Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for (NSE:SRIRAM).

31 Mar 2023
Total Cash From Operating Activities -60,186,950
Capital Expenditures [object Object]
Investing Cash Flow 926,640
Financing Cash Flow 49,640,520
Free Cash Flow -60,264,920
Net Short Term Debt Issuance -33,951,390
Net Issuance Payments Of Debt 72,354,600
Net P P E Purchase And Sale 1,151,990
Sale Of P P E 1,229,960
Change In Other Current Liabilities 3,517,210
Beginning Cash Position
End Cash Position
Changes In Cash
Other Non Cash Items
Change In Other Current Assets
Gain Loss On Sale Of P P E
Purchase Of P P E
Operating Cash Flow -60,186,950
Capital Expenditure -77,970
Net Income From Continuing Operations