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 87.98M.

All amounts in GBP

Operating Cash
Capital Expenditure
Free Cash Flow

The Bankers Investment Trust 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).

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 2022 31 Oct 2021 31 Oct 2020 31 Oct 2019
Net Income -179.17M 330.64M 59.64M 126.39M
Change To Netincome 267.29M -429.02M -98.13M -68.21M
Change To Account Receivables 1k 2k 1.02M 808k
Change To Liabilities 123k 374k -1.56M 1.19M
Change To Operating Activities -257k 42k -62k -42k
Total Cash From Operating Activities 87.98M -97.97M -39.1M 60.13M
Dividends Paid -29.02M -28.16M -26.97M -24.77M
Total Cash From Financing Activities -47.23M 70.01M 38.13M -24.77M
Effect Of Exchange Rate -310k -836k 247k -500k
Change In Cash 40.44M -28.79M -723k 34.87M
Repurchase Of Stock -18.21M -2.27M -2.27M -2.27M