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).

TSCO 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 Tesco PLC (TSCO), the free cash flow value is 2.808B.

All amounts in GBP

Operating Cash
Capital Expenditure
Free Cash Flow

Tesco 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).

TSCO Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Tesco PLC (LSE:TSCO).

26 Feb 2022 27 Feb 2021 29 Feb 2020 23 Feb 2019
Net Income 1.48B 5.95B 971M 1.27B
Depreciation 1.72B 1.55B 1.81B 1.84B
Change To Netincome 196M -7.34B 811M -122M
Change To Account Receivables 35M 125M 485M 112M
Change To Liabilities 790M -1.57B -4.25B 1.04B
Change To Inventory -281M -50M 179M 9M
Change To Operating Activities -182M 1.74B 45M -1.81B
Total Cash From Operating Activities 3.76B 602M 48M 2.55B
Capital Expenditures -949M -1.17B -1B -1.1B
Investments -1.01B 167M -425M 506M
Other Cashflows From Investing Activities 192M -677M 68M 67M
Total Cashflows From Investing Activities -1.74B 6.17B 2.4B -1.14B
Dividends Paid -704M -910M -656M -357M
Net Borrowings -958M -1.34B -1.12B -2.1B
Other Cashflows From Financing Activities -123M -580M -17M 35M
Total Cash From Financing Activities -2.23B -7.84B -1.94B -2.57B
Effect Of Exchange Rate 12M 8M -42M 15M
Change In Cash -200M -1.05B 464M -1.14B
Repurchase Of Stock -422M -66M -149M -206M