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NEW YORK, NY, October 28, 2022 /24-7PressRelease/ -- An important financial statistic in evaluating the ability of a corporation to grow and expand is the amount of free cashflows a corporation has. It's essential that a corporation has enough free cashflows to be able to invest in new markets and safeguard positions that they already hold. Isaac Toussie, an acclaimed tobacco investor, believes that big tobacco corporations do a good job of maintaining strong and steady free cashflows.
Toussie first points to Imperial Brands as an example of a tobacco corporation with a substantial free cashflow. In 2021, Imperial Brands had an annual free cashflow of 2.167 billion pounds (Yahoo Finance). This large free cashflow gives the company versatility in its allocation of assets and funds. Furthermore, this number is lower than their generally higher number. In 2020, the company had an annual free cashflow of 3.884 billion pounds and in 2019 they had a free cashflow of 3.219 billion pounds (Yahoo Finance).
Another example of a large tobacco company with a stable free cashflow is British American Tobacco. In 2021, British American Tobacco had a free cashflow of 12.68 billion dollars (Macrotrends). For 2020, the company had an annual free cashflow of 11.96 billion dollars and in 2019, they had an annual free cashflow of 10.68 billion dollars. (Macrotrends). Overall, both companies show stable and maintainable free cashflows that indicates viability and long-term success.
By looking at the free cashflows of two of the major tobacco companies, Toussie emphasized that tobacco companies have been able to maintain stability and incoming cashflows.
This article is presented for informational purposes only and should not be relied upon as financial or other advice.
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