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).

JPG 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 JPMorgan Global Growth & Income plc (JPG), the free cash flow value is 4.61M.

All amounts in GBP

Operating Cash
4.61M
Capital Expenditure
-
Free Cash Flow
4.61M

JPMorgan Global Growth & Income 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).

JPG Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for JPMorgan Global Growth & Income plc (NZX:JPG).

30 Jun 202130 Jun 202030 Jun 201930 Jun 2018
Net Income155.24M26.65M34.94M30.75M
Change To Netincome-150.18M-22.59M-29.77M-26.18M
Change To Liabilities
Change To Operating Activities-453k233k-4k-6k
Total Cash From Operating Activities4.61M4.29M5.17M4.57M
Investments-25.67M9.22M-758k-2.96M
Other Cashflows From Investing Activities811k184k4.39M-7.4M
Total Cashflows From Investing Activities-24.86M9.4M3.63M-10.36M
Dividends Paid-18.88M-17.46M-16.13M-14.15M
Net Borrowings19.89M19.89M19.89M4.82M
Total Cash From Financing Activities39.19M10.77M-4.31M7.67M
Effect Of Exchange Rate19k4k1k-1k
Change In Cash18.96M24.47M4.49M1.88M
Issuance Of Stock38.18M28.23M11.82M17M