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 202227 Feb 202129 Feb 202023 Feb 2019
Net Income1.48B6.14B971M1.27B
Depreciation1.72B1.55B1.81B1.84B
Change To Netincome196M-7.53B811M-122M
Change To Account Receivables35M125M485M112M
Change To Liabilities790M-1.57B-4.25B1.04B
Change To Inventory-281M-50M179M9M
Change To Operating Activities-182M1.74B45M-1.81B
Total Cash From Operating Activities3.76B602M48M2.55B
Capital Expenditures-949M-1.17B-1B-1.1B
Investments-1.01B167M-425M506M
Other Cashflows From Investing Activities192M7.13B62M67M
Total Cashflows From Investing Activities-1.74B6.17B2.4B-1.14B
Dividends Paid-704M-910M-656M-357M
Net Borrowings-958M-1.34B-1.12B-2.1B
Other Cashflows From Financing Activities-123M-580M-17M35M
Total Cash From Financing Activities-2.23B-7.84B-1.94B-2.57B
Effect Of Exchange Rate12M8M-42M15M
Change In Cash-200M-1.05B464M-1.14B
Repurchase Of Stock-422M-66M-149M-206M