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 1.174B.

All amounts in GBP

Operating Cash
Capital Expenditure
Free Cash Flow

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 2022 31 Mar 2021 31 Mar 2020 31 Mar 2019
Net Income 2.35B 1.64B 1.26B 1.51B
Depreciation 1.52B 1.29B 1.29B 1.55B
Change To Netincome 2.26B 1.26B 1.41B 1.24B
Change To Liabilities
Change To Operating Activities -158M 80M 510M -158M
Total Cash From Operating Activities 6.27B 4.46B 4.62B 4.32B
Capital Expenditures -5.1B -4.21B -4.29B -3.63B
Investments -615M -552M -115M 608M
Other Cashflows From Investing Activities -24M 63M 1.58B -151M
Total Cashflows From Investing Activities -14.01B -5.12B -3.19B -3.45B
Dividends Paid -922M -1.41B -892M -1.16B
Net Borrowings 10.96B 2.77B 207M 1.07B
Other Cashflows From Financing Activities -2.3B -621M -931M -879M
Total Cash From Financing Activities 7.77B 750M -1.61B -952M
Effect Of Exchange Rate 5M -7M 4M 3M
Change In Cash 25M 84M -179M -77M
Repurchase Of Stock -3M -2M -6M -2M
Issuance Of Stock 33M 16M 16M 17M