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).

AZN 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 AstraZeneca PLC (AZN), the free cash flow value is 4.872B.

All amounts in USD

Operating Cash
Capital Expenditure
Free Cash Flow

AstraZeneca 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).

AZN Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for AstraZeneca PLC (LSE:AZN).

31 Dec 202131 Dec 202031 Dec 201931 Dec 2018
Net Income112M3.2B1.33B2.15B
Change To Netincome-272M-1.65B-802M-1.71B
Change To Account Receivables-961M-739M-898M-523M
Change To Liabilities1.41B1.72B868M-103M
Change To Inventory1.58B-621M-316M-13M
Total Cash From Operating Activities5.96B4.8B2.97B2.62B
Capital Expenditures-1.09B-961M-979M-1.04B
Other Cashflows From Investing Activities54M87M274M193M
Total Cashflows From Investing Activities-11.06B-285M-657M963M
Dividends Paid-3.86B-3.57B-3.59B-3.48B
Net Borrowings7.65B1.44B-1.7B1.47B
Other Cashflows From Financing Activities-178M-101M4M-67M
Total Cash From Financing Activities3.65B-2.2B-1.76B-2.04B
Effect Of Exchange Rate-62M12M5M-38M
Change In Cash-1.51B2.32B552M1.5B
Issuance Of Stock29M30M3.52B34M