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).

## RKT 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 Reckitt Benckiser Group plc (RKT), the free cash flow value is 1.324B.

All amounts in GBP

Operating Cash
1.7B
Capital Expenditure
-373M
Free Cash Flow
1.324B

Reckitt Benckiser Group 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).

## RKT Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Reckitt Benckiser Group plc (LSE:RKT).

31 Dec 2021 31 Dec 2020 31 Dec 2019 31 Dec 2018
Net Income -32M 1.19B -3.68B 2.16B
Depreciation 363M 415M 467M 365M
Change To Netincome 1.61B 939M 4.79B 52M
Change To Account Receivables -130M 94M -150M -103M
Change To Liabilities -126M 1.15B 31M 81M
Change To Inventory -57M -317M -87M -68M
Total Cash From Operating Activities 1.7B 3.52B 1.41B 2.52B
Capital Expenditures -373M -394M -306M -342M
Investments -27M -36M -18M -9M
Total Cashflows From Investing Activities 239M -512M -442M -422M
Dividends Paid -1.25B -1.24B -1.23B -1.19B
Net Borrowings -1.01B -1.68B 426M -1.62B
Other Cashflows From Financing Activities -109M -63M -90M 11M
Total Cash From Financing Activities -2.29B -2.86B -830M -2.69B
Effect Of Exchange Rate -35M -52M -69M -54M
Change In Cash -385M 97M 70M -640M
Repurchase Of Stock -5M -4M -4M -4M
Issuance Of Stock 80M 131M 61M 105M