Cash generation remains inconsistent, evidenced by an OCF/NI ratio that has swung as high as 4.75, reflecting significant volatility in working capital and operational efficiency.
| Metric | TTM | Jun'25 | Jun'24 | Jun'23 | Jun'22 | Jun'21 | Jun'20 | Jun'19 | Jun'18 | Jun'17 | Jun'16 | Jun'15 | Jun'14 | Jun'13 | Jun'12 | Jun'11 | Jun'10 | Jun'09 | Jun'08 | Jun'07 | Jun'06 | Jun'05 | Jun'04 | Jun'03 | Jun'02 | Jun'01 | Jun'00 | Jun'99 | Jun'98 | Jun'97 |
|---|
| Cash from Operations | 9.82B | 4.3B | 6.07B | 5.74B | 3.94B | 3.65B | 2.32B | 3.25B | 3.08B | 3.13B | 2.55B | 2.55B | 1.79B | 2.05B | 2.09B | 2.09B | 2.3B | 1.65B | 1.55B | 1.63B | 1.57B | 1.63B | 1.75B | 1.57B | 1.38B | 945M | 707M | 324M | 833M | 690M |
| Operating CF Margin % | - | 21.22% | 29.92% | 27.94% | 25.47% | 28.7% | 19.74% | 25.24% | 25.36% | 25.99% | 24.3% | 23.59% | 17.45% | 17.91% | 19.45% | 21.04% | 23.5% | 17.76% | 19.15% | 21.72% | 21.64% | 24.38% | 19.64% | 16.64% | 12.25% | 7.37% | 5.96% | 2.75% | 4.71% | 5.13% |
| Operating CF Growth % | -54.35% | -29.15% | 5.59% | 45.97% | 7.69% | 57.5% | -28.57% | 5.32% | -1.53% | 22.92% | -0.12% | 42.51% | -12.6% | -2.15% | 0.1% | -9.01% | 38.94% | 6.78% | -4.68% | 3.44% | -3.5% | -6.75% | 11.17% | 13.61% | 46.27% | 33.66% | 118.21% | -61.1% | 20.72% | - |
| Net Income | 5.49B | 2.54B | 4.17B | 4.48B | 3.34B | 2.8B | 1.45B | 3.34B | 3.14B | 2.83B | 2.36B | 2.47B | 2.26B | 2.59B | 2.08B | 2.02B | 1.76B | 2.42B | 2.2B | 2.02B | 2.04B | 1.66B | 1.87B | 1.86B | 1.65B | 1.87B | 1.78B | 1.52B | 2.35B | 2B |
| Depreciation & Amortization | 1.14B | 1.72B | 493M | 1.3B | 828M | 447M | 1.84B | 374M | 493M | 361M | 473M | 440M | 629M | 403M | 411M | 352M | 372M | 300M | 233M | 210M | 214M | 241M | 224M | 276M | 314M | 377M | 348M | 335M | 484M | 342M |
| Stock-Based Compensation | 0 | 0 | 0 | 0 | 65.31M | 50M | 3M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 1.26B | 0 | 1.29B | 1.16B | -18M | 94M | -89M | -14M | -107M | 121M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 2.35B | 118M | 880M | 219M | -93M | -67M | -559M | -277M | -394M | -207M | -234M | -473M | -506M | -396M | 128M | -166M | -170M | -811M | -602M | -425M | -495M | -360M | -336.24M | -339.61M | -459.73M | -1.28B | -1.38B | -1.58B | -2.43B | -1.7B |
| Working Capital Changes | -719.41M | -77M | -768M | -1.41B | -179M | 331M | -328M | -222M | -159M | 151M | -53M | 117M | -597M | -553M | -529M | -112M | 334M | -253M | -282M | -180M | -192M | 89M | -13M | -227M | -125M | -28M | -45M | 51M | 424M | 49M |
| Change in Receivables | 225.25M | -49M | -66M | 142M | -378M | -446M | 523M | 11M | -202M | 89M | -86M | 0 | 0 | 0 | -218M | 62M | 69M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | -620.4M | -470M | -156M | -810M | -740M | -443M | -366M | -434M | -271M | -159M | -95M | -204M | -229M | -266M | -338M | -204M | -104M | -236M | -202M | 0 | 0 | -78.15M | -24.18M | 6.04M | -144.82M | -30M | -21M | -2M | -54M | 34M |
| Change in Payables | -324.26M | 0 | -546M | -746M | 939M | 1.22B | -485M | 201M | 314M | 221M | 128M | 0 | 0 | 0 | 27M | 30M | 369M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -2.91B | -1.72B | -1.59B | -1.43B | -1.34B | -1.09B | -805M | -270M | -1.15B | -552M | 596M | -894M | -1.09B | -1.25B | -1.81B | -454M | -479M | -453M | -812M | -285M | 393M | 800M | -396M | -170M | -500M | -1.13B | -258M | 1.7B | 190M | -725M |
| Capital Expenditures | -3B | -1.61B | -1.51B | -1.42B | -1.1B | -626M | -700M | -671M | -584M | -518M | -506M | -638M | -642M | -643M | -484M | -419M | -374M | -355M | -328M | -274M | -257M | -294M | -327M | -382M | -585M | -439M | -547M | -534M | -634M | -454M |
| CapEx % of Revenue | 8.03% | 7.96% | 7.45% | 6.89% | 7.1% | 4.92% | 5.96% | 5.21% | 4.8% | 4.3% | 4.83% | 5.9% | 6.26% | 5.62% | 4.5% | 4.22% | 3.82% | 3.81% | 4.05% | 3.66% | 3.54% | 4.4% | 3.68% | 4.05% | 5.19% | 3.42% | 4.61% | 4.53% | 3.58% | 3.38% |
| Acquisitions | 229.88M | 24M | -6M | -404M | -189M | -474M | -119M | 370M | -590M | -83M | 1.05B | -306M | -534M | -644M | -1.37B | -83M | -205M | -101M | -571M | -66M | 563M | -274M | -34M | 833M | 1.51B | -105M | 487M | 121M | 1.41B | 114M |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -168.03M | -132M | -33M | -44M | -55M | 9M | 14M | 31M | 23M | -52M | 55M | 50M | 80M | 39M | 38M | 48M | 143M | -50M | -50M | -50M | 651.04M | 164M | -22M | -549M | -1.38B | -529M | -160M | 2.19B | -581M | -385M |
| Cash from Financing | -4.02B | -1.49B | -3.11B | -3.04B | -3.26B | -2.79B | 1.04B | -2.92B | -2.12B | -2.46B | -2.8B | -1.73B | -1.62B | -213M | -785M | -1.4B | -1.25B | -1.1B | -904M | -1.1B | -2.03B | -2.31B | -553M | -1.34B | -1.78B | 282M | -586M | -1.88B | -646M | -142M |
| Debt Issued (Net) | 192.86M | 898M | -106M | 69M | 821M | -1.34B | 4.08B | 2.03B | 1.01B | -1.61B | -1.65B | -1.1B | -157M | 1.24B | 512M | -665.42M | -635.22M | 293M | 1.08B | 1.22B | 299M | -391M | -449M | -821M | -210M | 563M | -823.67M | -1.13B | 3.66B | 482.93M |
| Equity Issued (Net) | 2.74M | 1000K | 1000K | 1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | 1000K | 1000K | 1000K | -1000K | -1000K | 1000K | 1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K |
| Dividends Paid | -4.37B | -2.3B | -2.36B | -2.24B | -1.72B | -1.65B | -1.65B | -1.62B | -1.58B | -1.51B | -1.44B | -1.34B | -1.23B | -1.13B | -1.04B | -973M | -914M | -870M | -857M | -858M | -864M | -849M | -800M | -767M | -758M | -723.47M | 0 | 0 | 0 | 0 |
| Share Repurchases | -1.69B | 0 | -1.67B | -1.65B | -2.77B | -109M | -1.28B | -2.77B | -1.51B | -41M | -1M | -8M | -113M | -11M | 0 | -9M | 0 | -644.84M | -2.16B | -2.87B | -2.66B | -1.32B | -563M | -1.41B | -2.54B | -208M | -81.76M | -1.91B | -4.63B | -798.03M |
| Other Financing | -820.39M | -109M | -1.2B | -1.75B | 569.85M | 302.1M | -173M | 125.96M | 406.48M | 702.45M | 290.47M | 707.75M | -238.7M | -115M | 484.24M | 241.82M | 213.22M | 679M | 1.88B | 2.27B | 1.92B | 239M | -832M | -79M | 1.71B | 606.47M | 0 | 3.46B | 1.14B | 101.18M |
| Net Change in Cash | 703.68M | 1.07B | -659M | -907M | -426M | -516M | 2.43B | 28M | -224M | 108M | 427M | -150M | -1.11B | 623M | -534M | 174M | 552M | -972M | -1.6B | -763M | -379M | 61M | 726M | 626M | -17M | -15M | -189M | -21M | 216M | -177M |
| Free Cash Flow | 7.71B | 2.69B | 4.55B | 4.33B | 2.84B | 3.03B | 1.62B | 2.58B | 2.5B | 2.61B | 2.04B | 1.91B | 1.15B | 1.41B | 1.61B | 1.67B | 1.92B | 1.3B | 1.22B | 1.35B | 1.31B | 1.33B | 1.42B | 1.19B | 797.27M | 506M | 160M | -210M | 199M | 236M |
| FCF Margin % | 20.64% | 13.26% | 22.47% | 21.05% | 18.37% | 23.78% | 13.78% | 20.03% | 20.55% | 21.69% | 19.48% | 17.69% | 11.19% | 12.29% | 14.95% | 16.83% | 19.67% | 13.95% | 15.09% | 18.06% | 18.1% | 19.98% | 15.96% | 12.59% | 7.07% | 3.95% | 1.35% | -1.78% | 1.12% | 1.76% |
| FCF Growth % | 7.63% | -41.05% | 5.27% | 52.47% | -6.27% | 86.91% | -37.14% | 3.08% | -4.36% | 28.01% | 6.74% | 66.64% | -18.29% | -12.68% | -3.77% | -13.1% | 48.11% | 6.39% | -9.62% | 2.82% | -1.5% | -5.97% | 19.38% | 49.06% | 57.56% | 216.25% | 176.19% | -205.53% | -15.68% | - |
| FCF per Share | 13.82 | 4.82 | 8.14 | 7.62 | 4.88 | 5.17 | 2.75 | 4.25 | 4.01 | 4.14 | 3.24 | 3.04 | 1.82 | 2.23 | 2.57 | 2.68 | 3.09 | 2.08 | 1.89 | 2.00 | 1.84 | 1.80 | 1.86 | 1.53 | 0.94 | 0.60 | 0.19 | -0.24 | 0.26 | 0.23 |
| FCF Conversion (FCF/Net Income) | 1.40x | 1.83x | 1.57x | 1.29x | 1.00x | 1.37x | 1.34x | 1.03x | 1.02x | 1.18x | 1.14x | 1.07x | 0.80x | 0.82x | 1.08x | 1.10x | 1.41x | 1.03x | 1.02x | 1.09x | 0.82x | 1.21x | 1.25x | 16.19x | 0.83x | 0.78x | 0.72x | 0.34x | 0.62x | 0.98x |
| Interest Paid | 1.07B | 0 | 1.02B | 822M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 1.05B | 0 | 1.1B | 1.44B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Distributor inventory channel imbalances
As reported in recent financial statements, the OCF/NI ratio has exhibited extreme volatility, ranging from 0.90 to 4.75, which suggests that accounting net income is frequently decoupled from the actual cash-generating capacity of the underlying spirits business during periods of significant regional inventory adjustments.
The wide variance in the conversion of net income to operating cash flow indicates that non-cash items and working capital swings are heavily distorting reported profitability. Investors should monitor whether this divergence reflects genuine operational friction or merely the timing of excise duty payments and distributor-level inventory management.
Based on the provided quarterly data, FCF margins have fluctuated significantly between 10.8% and 32.1%, highlighting a lack of consistency in cash generation that appears to be driven by lumpy capital expenditure cycles and inconsistent operating cash flow performance across the global portfolio.
The inability to maintain a stable FCF margin suggests that the company's capital-intensive nature, combined with recent revenue stagnation, is placing pressure on the cash available for shareholder returns. This trend warrants further investigation into whether the current level of FCF is sufficient to support historical dividend growth without increasing leverage.
According to the latest quarterly filings, the company's CapEx/Revenue ratio has spiked as high as 10.5%, suggesting that management is currently prioritizing significant investment in production capacity or infrastructure despite the recent contraction in top-line growth and regional demand weakness.
Elevated capital intensity during a period of revenue stagnation may indicate that the company is struggling to optimize its asset base or is forced to invest heavily to maintain its aging spirits inventory. This capital-heavy approach appears to be a drag on free cash flow, potentially limiting the flexibility of the balance sheet.
As evidenced by the significant swings in working capital changes, which reached a negative $1.6B in 2023Q2, the company's cash flow is highly sensitive to inventory build-ups and the timing of collections, reflecting the inherent challenges of managing a global, multi-tier distribution network.
The recurring negative working capital adjustments suggest that the company may be experiencing channel stuffing or difficulty in clearing inventory in key markets like Latin America. This pattern implies that cash flow is being trapped in the supply chain, which may necessitate more aggressive promotional activity to normalize stock levels.
Quick answers to the most common questions about buying DEO stock.
Diageo plc (DEO) generated $4.30B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Diageo plc (DEO) generated $2.69B in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Diageo plc (DEO) spent $1.61B on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Diageo plc (DEO) returned $2.30B to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.