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 -20.168B.

All amounts in GBP

Operating Cash
-16.94B
Capital Expenditure
-3.23B
Free Cash Flow
-20.168B

Lloyds Banking 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).

LLOY Cash Flow Statement History

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

31 Dec 202131 Dec 202031 Dec 201931 Dec 2018
Net Income5.78B1.32B2.92B4.41B
Depreciation1.93B2.14B2.66B2.4B
Change To Netincome3.56B6.03B13.1B-4.78B
Change To Liabilities
Change To Operating Activities-19.68B-13.96B3.3B-35.38B
Total Cash From Operating Activities-16.94B-14.92B10.17B-11.3B
Capital Expenditures-3.23B-2.9B-3.44B-3.51B
Investments-697M-2.24B-99M14.15B
Total Cashflows From Investing Activities-2.54B-4B-2.13B11.92B
Dividends Paid-1.31B-453M-2.78B-2.67B
Net Borrowings-557M-3.87B-818M-527M
Other Cashflows From Financing Activities22.16B40.96B-208M-1.14B
Total Cash From Financing Activities20.33B36.77B-5.45B-4.11B
Effect Of Exchange Rate70M-196M-5M3M
Change In Cash912M17.66B2.59B-3.48B
Issuance Of Stock25M144M929M1.23B