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).

FCIT 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 F&C Investment Trust PLC (FCIT), the free cash flow value is 39.04M.

All amounts in GBP

Operating Cash
39.04M
Capital Expenditure
-
Free Cash Flow
39.04M

F&C Investment Trust 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).

FCIT Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for F&C Investment Trust PLC (LSE:FCIT).

31 Dec 202131 Dec 202031 Dec 201931 Dec 2018
Net Income919.28M507.11M677.08M-118.22M
Change To Netincome-880.24M-478.71M-624.72M165.77M
Change To Account Receivables60k-32k-8k782k
Change To Liabilities-61k139k-688k324k
Total Cash From Operating Activities39.04M28.5M51.66M48.66M
Investments-44.6M132.31M-171.78M45.96M
Other Cashflows From Investing Activities-56k-76k-42k-57k
Total Cashflows From Investing Activities-44.66M132.23M-171.83M45.9M
Dividends Paid-65.58M-62.77M-61.91M-58.56M
Net Borrowings150M-35M116.21M25M
Total Cash From Financing Activities461k-137.24M54.34M-33.08M
Effect Of Exchange Rate11.62M-5.03M-2.42M3.83M
Change In Cash6.46M18.46M-68.24M65.3M
Repurchase Of Stock-83.96M-41.4M-9.28M-194k