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).

BIT 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 The Bankers Investment Trust PLC (BIT), the free cash flow value is -97.97M.

All amounts in GBP

Operating Cash
-97.97M
Capital Expenditure
-
Free Cash Flow
-97.97M

The Bankers Investment Trust PLC has a negative 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).

BIT Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for The Bankers Investment Trust PLC (NZX:BIT).

31 Oct 2021 31 Oct 2020 31 Oct 2019 31 Oct 2018
Net Income 330.64M 59.64M 126.39M 7.58M
Change To Netincome -429.02M -98.13M -68.21M 19.9M
Change To Liabilities -2.87M 935k -6.16M
Change To Operating Activities 418k 1.28M 165k 183k
Total Cash From Operating Activities -97.97M -39.1M 60.13M 19.67M
Dividends Paid -28.16M -26.97M -24.77M -23.57M
Net Borrowings 74.23M 74.23M 74.23M 74.23M
Other Cashflows From Financing Activities -235k -130k -130k -130k
Total Cash From Financing Activities 70.01M 38.13M -24.77M -23.57M
Effect Of Exchange Rate -836k 247k -500k -132k
Change In Cash -28.79M -723k 34.87M -4.03M
Repurchase Of Stock -2.27M -2.27M -2.27M -2.27M
Issuance Of Stock 26.45M 65.22M 65.22M 65.22M