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).

ICP 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 Intermediate Capital Group plc (ICP), the free cash flow value is 104.10M.

All amounts in GBP

Operating Cash
111M
Capital Expenditure
-6.9M
Free Cash Flow
104.10M

Intermediate Capital Group 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).

ICP Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Intermediate Capital Group plc (LSE:ICP).

31 Mar 202131 Mar 202031 Mar 201931 Mar 2018
Net Income457.1M108.9M180.1M251M
Depreciation10.1M6.5M5.9M5.7M
Change To Netincome-413.5M158.4M-214.1M-603M
Change To Account Receivables-35.4M31.7M31.7M31.7M
Change To Liabilities87.2M-8.4M
Total Cash From Operating Activities111M300.9M-28.1M-346.3M
Capital Expenditures-6.9M-4M-5.2M-4.2M
Other Cashflows From Investing Activities40.6M-26.9M-26.9M-26.9M
Total Cashflows From Investing Activities64.7M-74M7.7M-4.2M
Dividends Paid-150.9M-142.8M-88.3M-80.7M
Net Borrowings-502.4M654.3M185.9M369.4M
Total Cash From Financing Activities-653.3M471.2M-133.1M74.6M
Effect Of Exchange Rate-28.1M34.8M-13.2M15.7M
Change In Cash-505.7M732.9M-166.7M-260.2M