{"slug":"dividend-safety-and-cash-flow-coverage","qid":"illustrative_cash_lines","label":"Illustrative year: the reconciliation behind the coverage test (hypothetical manufacturer, $ millions)","post_title":"Is a Dividend Safe? Free Cash Flow Test","post_url":"/blog/dividend-safety-and-cash-flow-coverage#q-illustrative_cash_lines","columns":["cash_flow_line","usd_millions"],"rows":[{"cash_flow_line":"Net income","usd_millions":400},{"cash_flow_line":"Depreciation add-back","usd_millions":200},{"cash_flow_line":"Net cash from operating activities","usd_millions":600},{"cash_flow_line":"Capital expenditures","usd_millions":-450},{"cash_flow_line":"Free cash flow","usd_millions":150},{"cash_flow_line":"Dividends paid","usd_millions":-320}],"shape":"ranking","sql":"SELECT\n    cash_flow_line,\n    usd_millions\nFROM\n(\n    SELECT 'Net income' AS cash_flow_line, 400 AS usd_millions, 1 AS line_order\n    UNION ALL\n    SELECT 'Depreciation add-back', 200, 2\n    UNION ALL\n    SELECT 'Net cash from operating activities', 600, 3\n    UNION ALL\n    SELECT 'Capital expenditures', -450, 4\n    UNION ALL\n    SELECT 'Free cash flow', 600 - 450, 5\n    UNION ALL\n    SELECT 'Dividends paid', -320, 6\n)\nORDER BY line_order","computed_at":"2026-08-07T14:33:01.262664+00:00","elapsed":0.001758716}