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).

LGEN 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 Legal & General Group Plc (LGEN), the free cash flow value is -374.00M.

All amounts in GBP

Operating Cash
-169M
Capital Expenditure
-205M
Free Cash Flow
-374.00M

Legal & General Group Plc has a negative 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).

LGEN Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Legal & General Group Plc (LSE:LGEN).

31 Dec 202131 Dec 202031 Dec 201931 Dec 2018
Net Income2.05B1.61B1.83B1.83B
Depreciation142M73M71M44M
Change To Netincome-26.07B-29.09B-45.44B22.89B
Change To Liabilities
Change To Operating Activities19.09B25.19B58.28B-14.75B
Total Cash From Operating Activities-169M4.3B-3.29B-361M
Capital Expenditures-205M-198M-89M-401M
Investments-56M-16M29M-130M
Total Cashflows From Investing Activities133M-457M138M-205M
Dividends Paid-1.09B-1.05B-998M-932M
Net Borrowings-386M548M318M635M
Total Cash From Financing Activities-1.5B-29M-692M-281M
Effect Of Exchange Rate8M-28M-16M16M
Change In Cash-1.53B3.79B-4.17B-1.6B
Repurchase Of Stock-34M-23M-20M-20M
Issuance Of Stock6M501M8M4M