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).

BATS 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 British American Tobacco p.l.c. (BATS), the free cash flow value is 9.871B.

All amounts in GBP

Operating Cash
Capital Expenditure
Free Cash Flow

British American Tobacco p.l.c. 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).

BATS Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for British American Tobacco p.l.c. (LSE:BATS).

31 Dec 2022 31 Dec 2021 31 Dec 2020 31 Dec 2019
Net Income 6.67B 6.8B 6.4B 5.7B
Depreciation 531M 1.03B 985M 994M
Change To Netincome 3.09B 1.95B 2.29B 1.98B
Change To Account Receivables -42M -393M 300M -699M
Change To Liabilities 3M 183M -320M 730M
Change To Inventory -246M 433M -144M -371M
Change To Operating Activities 388M -285M 273M 654M
Total Cash From Operating Activities 10.39B 9.72B 9.79B 9B
Capital Expenditures -523M -527M -511M -664M
Investments -168M -361M -120M 62M
Other Cashflows From Investing Activities 85M 33M 48M 80M
Total Cashflows From Investing Activities -705M -1.14B -783M -639M
Dividends Paid -4.92B -4.9B -4.75B -4.6B
Net Borrowings 2M -2.34B -971M -1.55B
Other Cashflows From Financing Activities -1.87B -1.42B -2.16B -2.33B
Total Cash From Financing Activities -8.88B -8.75B -7.9B -8.59B
Effect Of Exchange Rate 431M -253M -253M -57M
Change In Cash 874M -425M 853M -293M
Repurchase Of Stock -2.09B -82M -18M -117M