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).

NG 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 National Grid plc (NG), the free cash flow value is 99.00M.

All amounts in GBP

Operating Cash
4.46B
Capital Expenditure
-4.36B
Free Cash Flow
99.00M

National Grid 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).

NG Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for National Grid plc (LSE:NG).

31 Mar 202131 Mar 202031 Mar 201931 Mar 2018
Net Income1.64B1.26B1.51B3.55B
Depreciation1.48B1.46B1.55B1.53B
Change To Netincome1.1B1.24B1.24B-240M
Change To Liabilities
Change To Operating Activities46M475M-158M-337M
Total Cash From Operating Activities4.46B4.62B4.32B4.5B
Capital Expenditures-4.36B-4.58B-3.63B-3.74B
Investments-550M-120M608M5.96B
Other Cashflows From Investing Activities240M1.9B-151M532M
Total Cashflows From Investing Activities-5.12B-3.19B-3.45B2.57B
Dividends Paid-1.41B-892M-1.16B-1.32B
Net Borrowings3.11B420M1.07B-1.05B
Other Cashflows From Financing Activities-962M-1.14B-879M-1.35B
Total Cash From Financing Activities750M-1.61B-952M-7.88B
Effect Of Exchange Rate-7M4M3M-3M
Change In Cash84M-179M-77M-810M
Repurchase Of Stock-2M-6M-2M-1.02B
Issuance Of Stock16M16M17M33M