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