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).

BT-A 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 BT Group plc (BT-A), the free cash flow value is 1.06B.

All amounts in GBP

Operating Cash
Capital Expenditure
Free Cash Flow

BT Group 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).

BT-A Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for BT Group plc (LSE:BT-A).

31 Mar 202131 Mar 202031 Mar 201931 Mar 2018
Net Income1.47B1.73B2.16B2.03B
Change To Netincome963M1.47B724M908M
Change To Account Receivables186M44M-43M-156M
Change To Liabilities-91M-92M-15M-345M
Change To Inventory2M69M-138M-14M
Change To Operating Activities-916M-1.23B-1.98B-1.01B
Total Cash From Operating Activities5.96B6.27B4.26B4.93B
Capital Expenditures-4.9B-4.11B-3.68B-3.36B
Other Cashflows From Investing Activities11M31M23M7M
Total Cashflows From Investing Activities-3.24B-5.65B-3.8B-4.83B
Dividends Paid-2M-1.52B-1.5B-1.52B
Net Borrowings-1.94B1.08B2.55B2.36B
Other Cashflows From Financing Activities-1.26B-284M-407M-743M
Total Cash From Financing Activities-3.22B-807M634M-75M
Effect Of Exchange Rate-17M1M5M-31M
Change In Cash-513M-185M1.09B-12M
Repurchase Of Stock-14M-86M-9M-221M
Issuance Of Stock1M2M5M53M