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 1.303B.

All amounts in GBP

Operating Cash
5.91B
Capital Expenditure
-4.61B
Free Cash Flow
1.303B

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 2022 31 Mar 2021 31 Mar 2020 31 Mar 2019
Net Income 1.27B 1.47B 1.73B 2.16B
Depreciation 3.77B 3.63B 3.65B 2.91B
Change To Netincome 1.6B 963M 1.47B 724M
Change To Account Receivables -104M 186M 44M -43M
Change To Liabilities 6M -91M -92M -15M
Change To Inventory -3M 2M 69M -138M
Change To Operating Activities -1.27B -916M -1.23B -1.98B
Total Cash From Operating Activities 5.91B 5.96B 6.27B 4.26B
Capital Expenditures -4.61B -4.9B -4.11B -3.68B
Investments 962M 1.41B -1.85B -209M
Other Cashflows From Investing Activities 7M 11M 31M 23M
Total Cashflows From Investing Activities -3.56B -3.24B -5.65B -3.8B
Dividends Paid -228M -2M -1.52B -1.5B
Net Borrowings -1.29B -1.94B 1.08B 2.55B
Other Cashflows From Financing Activities -870M -1.26B -284M -407M
Total Cash From Financing Activities -2.56B -3.22B -807M 634M
Effect Of Exchange Rate 4M -17M 1M 5M
Change In Cash -204M -513M -185M 1.09B
Repurchase Of Stock -184M -14M -86M -9M
Issuance Of Stock 13M 1M 2M 5M