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).

## IMB 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 Imperial Brands PLC (IMB), the free cash flow value is 2.956B.

All amounts in GBP

Operating Cash
3.19B
Capital Expenditure
-230M
Free Cash Flow
2.956B

Imperial Brands 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).

## IMB Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Imperial Brands PLC (LSE:IMB).

30 Sep 2022 30 Sep 2021 30 Sep 2020 30 Sep 2019
Net Income 1.57B 2.83B 1.5B 1.01B
Depreciation 539M 645M 798M 974M
Change To Netincome 1B -685M 662M 1.17B
Change To Account Receivables 89M -201M 241M -267M
Change To Liabilities 146M -533M 734M 877M
Change To Inventory -195M 70M 67M -560M
Total Cash From Operating Activities 3.19B 2.17B 4.03B 3.24B
Capital Expenditures -230M -200M -302M -409M
Other Cashflows From Investing Activities 8M 15M 9M 19M
Total Cashflows From Investing Activities -155M 710M -331M -425M
Dividends Paid -1.32B -1.3B -1.75B -1.84B
Net Borrowings -834M -1.44B -1.93B 1.37B
Other Cashflows From Financing Activities -361M -467M -537M -689M
Total Cash From Financing Activities -2.52B -3.21B -4.31B -1.27B
Effect Of Exchange Rate 48M -9M 13M -15M
Change In Cash 563M -339M -660M 1.51B
Repurchase Of Stock -1M -1M -92M -108M