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
Capital Expenditure
Free Cash Flow

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