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 134.00M.

All amounts in GBP

Operating Cash
220M
Capital Expenditure
-86M
Free Cash Flow
134.00M

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 2021 31 Dec 2020 31 Dec 2019 31 Dec 2018
Net Income 1.97B 2.8B 2.55B 1.57B
Depreciation 219M 269M 297M 249M
Change To Netincome -12.91B -20.55B -27.93B 16.22B
Change To Liabilities
Change To Operating Activities 10.83B 14.87B 30.87B -12.82B
Total Cash From Operating Activities 220M -2.48B 5.97B 5.4B
Capital Expenditures -86M -77M -63M -87M
Total Cashflows From Investing Activities 74M -135M -150M 437M
Dividends Paid -1.13B -280M -1.24B -1.19B
Net Borrowings -2.04B -40M -375M -1.03B
Other Cashflows From Financing Activities -510M -552M -589M -647M
Total Cash From Financing Activities -4.4B -871M -2.19B -3.46B
Effect Of Exchange Rate -196M 236M -245M 61M
Change In Cash -4.3B -3.25B 3.38B 2.43B
Repurchase Of Stock -732M -2M -9M -604M
Issuance Of Stock 6M 3M 27M 8M