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).

IAG 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 International Consolidated Airlines Group S.A. (IAG), the free cash flow value is -885.00M.

All amounts in EUR

Operating Cash
-141M
Capital Expenditure
-744M
Free Cash Flow
-885.00M

International Consolidated Airlines Group S.A. has a negative 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).

IAG Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for International Consolidated Airlines Group S.A. (LSE:IAG).

31 Dec 202131 Dec 202031 Dec 201931 Dec 2018
Net Income-2.93B-6.93B1.72B2.88B
Depreciation1.75B1.93B1.98B1.13B
Change To Netincome-757M264M246M-839M
Change To Account Receivables-351M2.28B-935M-650M
Change To Liabilities1.99B-1.12B865M586M
Total Cash From Operating Activities-141M-3.43B4B3.24B
Capital Expenditures-744M-1.94B-3.46B-2.8B
Investments91M2.37B-103M924M
Other Cashflows From Investing Activities-72M2M-1M61M
Total Cashflows From Investing Activities-181M1.56B-2.66B-1.24B
Net Borrowings2.55B1.05B49M-21M
Other Cashflows From Financing Activities-293M83M83M-312M
Total Cash From Financing Activities2.23B3.81B-1.26B-1.41B
Effect Of Exchange Rate205M-228M140M-38M
Change In Cash2.12B1.71B225M545M
Repurchase Of Stock-24M-24M-24M-500M