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).

AAF 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 Airtel Africa Plc (AAF), the free cash flow value is 1.294B.

All amounts in USD

Operating Cash
2.01B
Capital Expenditure
-717M
Free Cash Flow
1.294B

Airtel Africa 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).

AAF Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Airtel Africa Plc (LSE:AAF).

31 Mar 202231 Mar 202131 Mar 202031 Mar 2019
Net Income631M339M370M388M
Depreciation744M681M605M573M
Change To Netincome605M570M399M241M
Change To Account Receivables-18M-8M-11M-29M
Change To Liabilities61M-22M-6M-51M
Change To Inventory4M-4M-1M-1M
Change To Operating Activities-16M110M31M-56M
Total Cash From Operating Activities2.01B1.67B1.39B1.07B
Capital Expenditures-717M-645M-656M-568M
Investments-87M-257M-257M-257M
Other Cashflows From Investing Activities19M14M29M21M
Total Cashflows From Investing Activities-557M-1.16B-801M-630M
Dividends Paid-169M-169M-113M-113M
Net Borrowings-1.39B-66M-735M-1.75B
Other Cashflows From Financing Activities-39M-336M-209M-454M
Total Cash From Financing Activities-1.61B-575M-370M179M
Effect Of Exchange Rate-3M-17M1M4M
Change In Cash-156M-84M217M624M
Repurchase Of Stock-6M-4M-4M-4M