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 1.967B.

All amounts in GBP

Operating Cash
2.17B
Capital Expenditure
-200M
Free Cash Flow
1.967B

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 202130 Sep 202030 Sep 201930 Sep 2018
Net Income2.83B1.5B1.01B1.37B
Depreciation645M798M974M1.23B
Change To Netincome-685M662M1.17B465M
Change To Account Receivables-201M241M-267M-35M
Change To Liabilities-533M734M877M136M
Change To Inventory70M67M-560M-112M
Total Cash From Operating Activities2.17B4.03B3.24B3.09B
Capital Expenditures-200M-302M-409M-327M
Other Cashflows From Investing Activities15M9M19M10M
Total Cashflows From Investing Activities710M-331M-425M-230M
Dividends Paid-1.3B-1.75B-1.84B-1.68B
Net Borrowings-1.44B-1.93B1.37B-642M
Other Cashflows From Financing Activities-467M-537M-689M-297M
Total Cash From Financing Activities-3.21B-4.31B-1.27B-2.65B
Effect Of Exchange Rate-9M13M-15M-52M
Change In Cash-339M-660M1.51B151M