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
5.96B
Capital Expenditure
-1.09B
Free Cash Flow
4.872B

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 2021 31 Dec 2020 31 Dec 2019 31 Dec 2018
Net Income 112M 3.2B 1.33B 2.15B
Depreciation 4.04B 2.83B 2.71B 2.73B
Change To Netincome -272M -1.65B -802M -1.71B
Change To Account Receivables -961M -739M -898M -523M
Change To Liabilities 1.41B 1.72B 868M -103M
Change To Inventory 1.58B -621M -316M -13M
Total Cash From Operating Activities 5.96B 4.8B 2.97B 2.62B
Capital Expenditures -1.09B -961M -979M -1.04B
Investments 605M 2B 125M 140M
Other Cashflows From Investing Activities 54M 87M 274M 193M
Total Cashflows From Investing Activities -11.06B -285M -657M 963M
Dividends Paid -3.86B -3.57B -3.59B -3.48B
Net Borrowings 7.65B 1.44B -1.7B 1.47B
Other Cashflows From Financing Activities -178M -101M 4M -67M
Total Cash From Financing Activities 3.65B -2.2B -1.76B -2.04B
Effect Of Exchange Rate -62M 12M 5M -38M
Change In Cash -1.51B 2.32B 552M 1.5B
Issuance Of Stock 29M 30M 3.52B 34M