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).

AV 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 Aviva plc (AV), the free cash flow value is 15.867B.

All amounts in GBP

Operating Cash
Capital Expenditure
Free Cash Flow

Aviva 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).

AV Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Aviva plc (LSE:AV).

31 Dec 2022 31 Dec 2021 31 Dec 2020 31 Dec 2019
Net Income -1.16B 1.97B 2.8B 2.55B
Depreciation 199M 219M 269M 297M
Change To Netincome 58.04B -12.91B -20.55B -27.93B
Change To Liabilities
Change To Operating Activities -41.3B 10.83B 14.87B 30.87B
Total Cash From Operating Activities 15.88B 220M -2.48B 5.97B
Capital Expenditures -16M -86M -77M -63M
Total Cashflows From Investing Activities -339M 74M -135M -150M
Dividends Paid -862M -1.13B -280M -1.24B
Net Borrowings -958M -2.04B -40M -375M
Other Cashflows From Financing Activities -471M -510M -552M -589M
Total Cash From Financing Activities -5.94B -4.4B -871M -2.19B
Effect Of Exchange Rate 93M -196M 236M -245M
Change In Cash 9.7B -4.3B -3.25B 3.38B
Repurchase Of Stock -4.16B -732M -2M -9M
Issuance Of Stock 513M 6M 3M 27M