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