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).

## BP 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 BP p.l.c. (BP), the free cash flow value is 12.725B.

All amounts in USD

Operating Cash
23.61B
Capital Expenditure
-10.89B
Free Cash Flow
12.725B

BP 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).

## BP Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for BP p.l.c. (LSE:BP).

31 Dec 2021 31 Dec 2020 31 Dec 2019 31 Dec 2018
Net Income 7.57B -20.3B 4.03B 9.38B
Depreciation 12.52B 36.59B 18.41B 16.68B
Change To Netincome 1.22B -4.77B 6.42B 588M
Change To Liabilities
Change To Inventory -7.46B 3.96B -3.41B 672M
Change To Operating Activities 9.77B -3.31B 312M -4.45B
Total Cash From Operating Activities 23.61B 12.16B 25.77B 22.87B
Capital Expenditures -10.89B -12.31B -15.42B -16.71B
Investments -1.77B -1.71B -441M -1.4B
Total Cashflows From Investing Activities -5.69B -7.86B -16.97B -21.57B
Dividends Paid -4.3B -6.34B -6.95B -6.7B
Net Borrowings -10.82B -1.12B -713M 3.15B
Other Cashflows From Financing Activities 224M 12.24B 353M -170M
Total Cash From Financing Activities -18.08B 3.96B -8.82B -4.08B
Effect Of Exchange Rate -269M 379M 25M -330M
Change In Cash -430M 8.64B 4M -3.11B
Repurchase Of Stock -3.18B -824M -1.51B -355M