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).

MNG 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 M&G plc (MNG), the free cash flow value is -1.077B.

All amounts in GBP

Operating Cash
Capital Expenditure
Free Cash Flow

M&G 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).

MNG Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for M&G plc (LSE:MNG).

31 Dec 2022 31 Dec 2021 31 Dec 2020 31 Dec 2019
Net Income -1.63B 83M 1.14B 1.12B
Depreciation 176M 148M 128M 108M
Change To Netincome -897M -897M 37M 313M
Change To Liabilities
Change To Operating Activities 1.85B 1.85B 1.27B -1.33B
Total Cash From Operating Activities -504M -504M 2.58B 206M
Capital Expenditures -573M -770M -821M -393M
Total Cashflows From Investing Activities -368M -466M -957M -382M
Dividends Paid -465M -466M -462M -3.52B
Net Borrowings -30M -30M -24M 3.19B
Other Cashflows From Financing Activities -204M -204M -189M -22M
Total Cash From Financing Activities -1.2B -1.2B -880M -344M
Effect Of Exchange Rate 50M -23M -9M -4M
Change In Cash -2.02B 132M 730M -524M
Repurchase Of Stock -503M -503M -105M -105M