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).

IHG 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 InterContinental Hotels Group PLC (IHG), the free cash flow value is 592.00M.

All amounts in USD

Operating Cash
Capital Expenditure
Free Cash Flow

InterContinental Hotels 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).

IHG Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for InterContinental Hotels Group PLC (LSE:IHG).

31 Dec 2022 31 Dec 2021 31 Dec 2020 31 Dec 2019
Net Income 375M 266M -260M 385M
Depreciation 48M 60M 110M 116M
Change To Netincome 102M 170M 314M 208M
Change To Account Receivables -132M -75M 38M -70M
Change To Liabilities 229M 192M -68M 15M
Change To Operating Activities 4M -8M 2M -1M
Total Cash From Operating Activities 646M 636M 137M 653M
Capital Expenditures -54M -17M -27M -80M
Investments 12M 9M 15M -15M
Other Cashflows From Investing Activities 6M 6M 6M 6M
Total Cashflows From Investing Activities -78M -12M -61M -493M
Dividends Paid -233M -233M -233M -211M
Net Borrowings -245M -860M 1.35B 68M
Total Cash From Financing Activities -961M -860M 1.35B -660M
Effect Of Exchange Rate -77M 3M 86M 8M
Change In Cash -470M -233M 1.52B -492M
Repurchase Of Stock -483M -483M -483M -5M