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
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 |