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).

PHNX 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 Phoenix Group Holdings plc (PHNX), the free cash flow value is -1.02B.

All amounts in GBP

Operating Cash
-1.02B
Capital Expenditure
-
Free Cash Flow
-1.02B

Phoenix Group Holdings 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).

PHNX Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Phoenix Group Holdings plc (LSE:PHNX).

31 Dec 202131 Dec 202031 Dec 201931 Dec 2018
Net Income-837M798M85M379M
Depreciation38M46M38M20M
Change To Netincome-10.2B-11.02B-18.57B12.69B
Change To Liabilities
Change To Operating Activities9.4B16.46B18.14B-13.64B
Total Cash From Operating Activities-1.02B6.75B68M-353M
Total Cashflows From Investing Activities304M-979M-979M1.61B
Dividends Paid-511M-432M-367M-276M
Net Borrowings-339M1.37B-49M369M
Other Cashflows From Financing Activities-246M-185M-114M-96M
Total Cash From Financing Activities-1.09B757M-528M1.43B
Change In Cash-1.89B6.53B-460M2.68B
Issuance Of Stock2M2M2M1.43B