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