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
Capital Expenditure
Free Cash Flow

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