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).

ITV 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 ITV plc (ITV), the free cash flow value is 149.00M.

All amounts in GBP

Operating Cash
171M
Capital Expenditure
-22M
Free Cash Flow
149.00M

ITV 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).

ITV Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for ITV plc (LSE:ITV).

31 Dec 202131 Dec 202031 Dec 201931 Dec 2018
Net Income378M285M473M466M
Depreciation115M123M115M109M
Change To Netincome-202M-41M-72M-69M
Change To Account Receivables-270M2M-37M-103M
Change To Liabilities135M119M-8M-4M
Change To Operating Activities-6M16M-18M14M
Total Cash From Operating Activities171M525M468M424M
Capital Expenditures-22M-35M-30M-56M
Investments-19M-18M-18M-13M
Other Cashflows From Investing Activities-1M3M-3M-15M
Total Cashflows From Investing Activities-65M-72M46M-93M
Net Borrowings-23M-24M6M-22M
Other Cashflows From Financing Activities-12M-3M-43M-18M
Total Cash From Financing Activities-35M-28M-361M-360M
Effect Of Exchange Rate-3M-3M-2M-2M
Change In Cash68M422M151M-31M