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).

NWG 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 NatWest Group plc (NWG), the free cash flow value is -961.00M.

All amounts in GBP

Operating Cash
-60M
Capital Expenditure
-901M
Free Cash Flow
-961.00M

NatWest 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).

NWG Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for NatWest Group plc (LSE:NWG).

31 Dec 202131 Dec 202031 Dec 201931 Dec 2018
Net Income3.27B-372M3.54B2.16B
Depreciation836M905M1.22B731M
Change To Netincome2.97B1.75B2.1B6.33B
Change To Liabilities
Change To Operating Activities-74.59B-23.76B1.87B-42.84B
Total Cash From Operating Activities-60M-33.51B-8.61B1.42B
Capital Expenditures-901M-376M-559M-619M
Investments6.66B7.11B-1.35B-7.69B
Other Cashflows From Investing Activities636M521M854M534M
Total Cashflows From Investing Activities3.06B7.55B-716M-7.99B
Dividends Paid-1.01B-381M-1.07B-711M
Net Borrowings-716M-1.75B863M3.85B
Other Cashflows From Financing Activities53.74B62.6B5.52B-8.26B
Total Cash From Financing Activities51.14B62.7B2.96B-7.77B
Effect Of Exchange Rate-2.64B1.88B-1.98B676M
Change In Cash51.51B38.61B-8.35B-13.67B
Repurchase Of Stock-1.81B-2M-21M-2.83B
Issuance Of Stock937M2.22B17M166M