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).

ADM 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 Admiral Group plc (ADM), the free cash flow value is 234.00M.

All amounts in GBP

Operating Cash
244.6M
Capital Expenditure
-10.6M
Free Cash Flow
234.00M

Admiral Group 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).

ADM Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Admiral Group plc (LSE:ADM).

31 Dec 202131 Dec 202031 Dec 201931 Dec 2018
Net Income997.9M528.8M432.4M395.1M
Depreciation23.6M23.6M23.9M12M
Change To Netincome-566.5M-200.2M-146.2M-187.1M
Change To Account Receivables-9.2M25.1M-147M-145M
Change To Liabilities-56.1M40.2M174.4M159.9M
Change To Operating Activities-164.4M172.1M-118.3M-66.3M
Total Cash From Operating Activities244.6M608.8M236.6M184.1M
Capital Expenditures-10.6M-18.2M-16.6M-10M
Other Cashflows From Investing Activities457M-100k-100k-100k
Total Cashflows From Investing Activities387.8M-43.1M-33.6M-23.9M
Dividends Paid-442.17M-322.28M-260.58M-226.4M
Net Borrowings176.3M-55.6M75.3M220.2M
Other Cashflows From Financing Activities-20.2M-16.8M-12.4M5.2M
Total Cash From Financing Activities-564.8M-498.1M-304.9M-107.3M
Effect Of Exchange Rate-5.3M2.4M6.8M-2.9M
Change In Cash21M70M-95.1M50M