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).

VOD 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 Vodafone Group Public Limited Company (VOD), the free cash flow value is 12.283B.

All amounts in EUR

Operating Cash
18.08B
Capital Expenditure
-5.8B
Free Cash Flow
12.283B

Vodafone Group Public Limited Company 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).

VOD Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Vodafone Group Public Limited Company (LSE:VOD).

31 Mar 202231 Mar 202131 Mar 202031 Mar 2019
Net Income2.09B112M-920M-8.02B
Depreciation11.62B11.89B14.17B9.79B
Change To Netincome2.56B3.22B4.2B10.63B
Change To Account Receivables-638M582M-38M-31M
Change To Liabilities384M-730M-100M739M
Change To Inventory-162M-68M68M-131M
Total Cash From Operating Activities18.08B17.21B17.38B12.98B
Capital Expenditures-5.8B-5.41B-5.18B-5.05B
Investments1.27B-1.61B4.54B-1.36B
Other Cashflows From Investing Activities885M929M788M748M
Total Cashflows From Investing Activities-6.87B-9.26B-8.09B-9.22B
Dividends Paid-2.47B-2.43B-2.3B-4.06B
Net Borrowings-2.7B-10.67B-3.61B8B
Other Cashflows From Financing Activities-2.45B-2.04B-2.63B-2.88B
Total Cash From Financing Activities-9.71B-15.2B-9.35B4.44B
Effect Of Exchange Rate74M-255M-256M11M
Change In Cash1.58B-7.5B-317M8.21B
Repurchase Of Stock-2.09B-62M-821M-475M