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).

## LLOY 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 Lloyds Banking Group plc (LLOY), the free cash flow value is 2.28B.

All amounts in GBP

Operating Cash
6.13B
Capital Expenditure
-3.85B
Free Cash Flow
2.28B

Lloyds Banking Group 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).

## LLOY Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Lloyds Banking Group plc (LSE:LLOY).

31 Dec 2022 31 Dec 2021 31 Dec 2020 31 Dec 2019
Net Income 5.46B 5.78B 1.32B 2.92B
Depreciation 1.56B 1.93B 2.73B 2.66B
Change To Netincome -18.47B 3.56B 6.03B 13.1B
Change To Liabilities
Change To Operating Activities -1.72B -19.54B -12.98B 3.3B
Total Cash From Operating Activities 6.13B -16.8B -13.94B 10.17B
Capital Expenditures -3.85B -3.23B -2.9B -3.44B
Investments 3.22B -697M -2.24B -99M
Total Cashflows From Investing Activities 510M -2.54B -4B -2.13B
Dividends Paid -1.91B -1.31B -453M -2.78B
Net Borrowings -1.38B -557M -3.87B -818M
Other Cashflows From Financing Activities 15.19B 22.16B 40.96B -208M
Total Cash From Financing Activities 9.26B 20.33B 36.77B -5.45B
Effect Of Exchange Rate 727M 70M -196M -5M
Change In Cash 16.64B 1.05B 18.64B 2.59B
Repurchase Of Stock -3.41B -3.41B -3.41B -2.58B
Issuance Of Stock 776M 25M 144M 929M