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).

## ULVR 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 Unilever PLC (ULVR), the free cash flow value is 6.864B.

All amounts in EUR

Operating Cash
7.97B
Capital Expenditure
-1.11B
Free Cash Flow
6.864B

Unilever 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).

## ULVR Cash Flow Statement History

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

31 Dec 2021 31 Dec 2020 31 Dec 2019 31 Dec 2018
Net Income 6.05B 5.58B 5.62B 9.37B
Depreciation 1.52B 1.74B 1.96B 2.01B
Change To Netincome 224M 779M 529M -3.27B
Change To Account Receivables -307M 1.12B -445M -1.3B
Change To Liabilities 718M 142M 123M 976M
Change To Inventory -458M -587M 313M -471M
Total Cash From Operating Activities 7.97B 9.06B 8.11B 7.32B
Capital Expenditures -1.11B -863M -1.32B -1.33B
Investments -252M 481M -173M 47M
Other Cashflows From Investing Activities 333M 357M 310M 264M
Total Cashflows From Investing Activities -3.25B -1.48B -2.24B 4.64B
Dividends Paid -4.48B -4.28B -4.21B -4.07B
Net Borrowings 1.39B -181M 901M -506M
Other Cashflows From Financing Activities -988M -1.34B -1.16B -1.26B
Total Cash From Financing Activities -7.1B -5.8B -4.67B -12.11B
Effect Of Exchange Rate 285M -414M -179M 72M
Change In Cash -2.09B 1.36B 1.03B -79M
Repurchase Of Stock -3.02B -3.02B -201M -6.28B