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