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
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 2021||31 Mar 2020||31 Mar 2019||31 Mar 2018|
|Change To Netincome||963M||1.47B||724M||908M|
|Change To Account Receivables||186M||44M||-43M||-156M|
|Change To Liabilities||-91M||-92M||-15M||-345M|
|Change To Inventory||2M||69M||-138M||-14M|
|Change To Operating Activities||-916M||-1.23B||-1.98B||-1.01B|
|Total Cash From Operating Activities||5.96B||6.27B||4.26B||4.93B|
|Other Cashflows From Investing Activities||11M||31M||23M||7M|
|Total Cashflows From Investing Activities||-3.24B||-5.65B||-3.8B||-4.83B|
|Other Cashflows From Financing Activities||-1.26B||-284M||-407M||-743M|
|Total Cash From Financing Activities||-3.22B||-807M||634M||-75M|
|Effect Of Exchange Rate||-17M||1M||5M||-31M|
|Change In Cash||-513M||-185M||1.09B||-12M|
|Repurchase Of Stock||-14M||-86M||-9M||-221M|
|Issuance Of Stock||1M||2M||5M||53M|