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 5.826B.

All amounts in EUR

Operating Cash
Capital Expenditure
Free Cash Flow

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 2022 31 Dec 2021 31 Dec 2020 31 Dec 2019
Net Income 7.64B 6.05B 5.58B 5.62B
Depreciation 1.73B 1.54B 2.02B 1.96B
Change To Netincome -1.88B 207M 779M 529M
Change To Account Receivables -1.85B -307M 1.12B -445M
Change To Liabilities 2.83B 718M 142M 123M
Change To Inventory -1.4B -458M -587M 313M
Total Cash From Operating Activities 7.28B 7.97B 9.06B 8.11B
Capital Expenditures -1.46B -1.11B -863M -1.32B
Investments -35M -252M 481M -173M
Other Cashflows From Investing Activities 472M 333M 357M 310M
Total Cashflows From Investing Activities 2.45B -3.25B -1.48B -2.24B
Dividends Paid -4.33B -4.48B -4.28B -4.21B
Net Borrowings -1.73B 1.39B -181M 901M
Other Cashflows From Financing Activities -1.32B -988M -1.34B -1.16B
Total Cash From Financing Activities -8.89B -7.1B -5.8B -4.67B
Effect Of Exchange Rate -7M 285M -414M -179M
Change In Cash 838M -2.09B 1.36B 1.03B
Repurchase Of Stock -1.51B -3.02B -3.02B -201M