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 538.00M.

All amounts in GBP

Operating Cash
1.31B
Capital Expenditure
-770M
Free Cash Flow
538.00M

M&G 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).

MNG Cash Flow Statement History

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

31 Dec 2021 31 Dec 2020 31 Dec 2019 31 Dec 2018
Net Income 83M 1.14B 1.12B 33M
Depreciation 148M 128M 108M 102M
Change To Netincome -77M 37M 313M -240M
Change To Liabilities
Change To Operating Activities 1.15B 1.27B -1.33B 1.51B
Total Cash From Operating Activities 1.31B 2.58B 206M 1.41B
Capital Expenditures -770M -821M -393M -241M
Total Cashflows From Investing Activities -466M -957M -382M -1.26B
Dividends Paid -466M -462M -3.52B -746M
Net Borrowings -35M -24M 3.19B -100M
Other Cashflows From Financing Activities -186M -189M -22M -220M
Total Cash From Financing Activities -687M -880M -344M -978M
Effect Of Exchange Rate -23M -9M -4M 47M
Change In Cash 132M 730M -524M -785M