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).

## CNA 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 Centrica plc (CNA), the free cash flow value is 1.191B.

All amounts in GBP

Operating Cash
1.61B
Capital Expenditure
-420M
Free Cash Flow
1.191B

Centrica 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).

## CNA Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Centrica plc (LSE:CNA).

31 Dec 2021 31 Dec 2020 31 Dec 2019 31 Dec 2018
Net Income 1.21B 41M -1.02B 183M
Depreciation 768M 883M 983M 788M
Change To Netincome -613M 680M 1.26B 793M
Change To Account Receivables -3.36B 363M 240M -834M
Change To Liabilities 3.96B -571M -182M 831M
Change To Inventory -361M 4M -28M -43M
Total Cash From Operating Activities 1.61B 1.4B 1.25B 1.93B
Capital Expenditures -420M -489M -757M -574M
Investments -1M 111M 49M -79M
Other Cashflows From Investing Activities 2.59B 47M 160M 37M
Total Cashflows From Investing Activities 2.26B -285M -503M -1.01B
Net Borrowings -706M -234M -227M -1.67B
Other Cashflows From Financing Activities -233M -218M -381M -305M
Total Cash From Financing Activities -938M -482M -1.08B -2.54B
Effect Of Exchange Rate -1M -34M -4M 4M
Change In Cash 2.94B 599M -334M -1.61B
Issuance Of Stock 1M 1M 2M 2M