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).

## AAL 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 Anglo American plc (AAL), the free cash flow value is 10.991B.

All amounts in USD

Operating Cash
16.72B
Capital Expenditure
-5.73B
Free Cash Flow
10.991B

Anglo American 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).

## AAL Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Anglo American plc (LSE:AAL).

31 Dec 202131 Dec 202031 Dec 201931 Dec 2018
Net Income8.56B2.09B3.55B3.55B
Depreciation2.71B2.6B2.81B2.6B
Change To Netincome4.69B3.34B1.33B954M
Change To Account Receivables-637M-1.03B-170M-74M
Change To Liabilities1.37B1.06B554M570M
Change To Inventory328M-1.56B-434M-526M
Change To Operating Activities-303M126M22M58M
Total Cash From Operating Activities16.72B6.62B7.66B7.13B
Capital Expenditures-5.73B-4.65B-4.74B-3.4B
Investments-6M53M-86M-102M
Other Cashflows From Investing Activities168M46M132M161M
Total Cashflows From Investing Activities-5.56B-4.74B-4.72B-3.1B
Dividends Paid-3.05B-904M-1.42B-1.29B
Net Borrowings-922M1.73B813M-2.74B
Other Cashflows From Financing Activities-3.3B-1.16B-1.46B-650M
Total Cash From Financing Activities-9.36B-716M-3.12B-4.98B
Effect Of Exchange Rate-260M11M-45M-296M
Change In Cash1.55B1.17B-213M-1.24B
Repurchase Of Stock-1.08B-385M-1.04B-293M