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
3.76B
Capital Expenditure
-949M
Free Cash Flow
2.808B

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