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).

PRU 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 Prudential plc (PRU), the free cash flow value is -181.00M.

All amounts in USD

Operating Cash
-145M
Capital Expenditure
-36M
Free Cash Flow
-181.00M

Prudential 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).

PRU Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Prudential plc (LSE:PRU).

31 Dec 2021 31 Dec 2020 31 Dec 2019 31 Dec 2018
Net Income -2.04B 2.12B 783M 4.02B
Depreciation 169M 186M 465M 465M
Change To Netincome 4.51B 4.51B -3.87B -118M
Change To Liabilities
Change To Operating Activities -2.78B -338M -2B -541M
Total Cash From Operating Activities -145M 1.97B -5.31B 3.36B
Capital Expenditures -36M -57M -64M -134M
Total Cashflows From Investing Activities -726M -1.2B -778M -1.05B
Dividends Paid -421M -814M -1.63B -1.66B
Net Borrowings -373M 855M -274M 1.53B
Other Cashflows From Financing Activities 2.01B 158M -708M -683M
Total Cash From Financing Activities 3.59B 212M -2.59B -796M
Effect Of Exchange Rate -44M 70M 203M -529M
Change In Cash -848M 1.05B -8.48B 981M
Issuance Of Stock 2.38B 13M 22M 23M