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).

STAN 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 Standard Chartered PLC (STAN), the free cash flow value is -54.939B.

All amounts in USD

Operating Cash
-54.59B
Capital Expenditure
-352M
Free Cash Flow
-54.939B

Standard Chartered 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).

STAN Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Standard Chartered PLC (LSE:STAN).

31 Dec 2021 31 Dec 2020 31 Dec 2019 31 Dec 2018
Net Income 2.31B 724M 2.3B 1.05B
Depreciation 720M 736M 744M 494M
Change To Netincome 674M 2.89B 1.09B 2.36B
Change To Liabilities
Change To Operating Activities -67.58B 15.31B -26.17B -11.24B
Total Cash From Operating Activities -54.59B -6.85B -28.78B -5.92B
Capital Expenditures -352M -1.27B -518M -171M
Investments -8.66B -3.39B -17.87B -12.4B
Other Cashflows From Investing Activities 38M 38M -5.09B 67M
Total Cashflows From Investing Activities -8.99B -4.48B -17.82B -12.42B
Dividends Paid -784M -395M -1.17B -975M
Net Borrowings 1.31B 5.36B 2.12B 1.14B
Other Cashflows From Financing Activities 65.6B 26.84B 26.47B 30.01B
Total Cash From Financing Activities 67.07B 30.46B 26.8B 30.19B
Effect Of Exchange Rate -1.76B 1.29B -245M -1.58B
Change In Cash 1.73B 20.42B -20.05B 10.27B
Repurchase Of Stock -1.79B -2.34B -1.21B -8M
Issuance Of Stock 2.73B 1B 584M 23M