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).

3PL 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 3P Learning Limited (3PL), the free cash flow value is 13.01M.

All amounts in AUD

Operating Cash
13.15M
Capital Expenditure
-136k
Free Cash Flow
13.01M

3P Learning Limited 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).

3PL Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for 3P Learning Limited (ASX:3PL).

30 Jun 202030 Jun 201930 Jun 201830 Jun 2017
Net Income1.55M5.91M-18.69M-7.11M
Depreciation2.46M1.14M835k552k
Change To Netincome-468k-955k24.85M4.7M
Change To Account Receivables-620k-4.22M1.41M1.29M
Change To Liabilities1.48M1.5M829k-1.22M
Change To Operating Activities35k1.02M-5.14M756k
Total Cash From Operating Activities13.15M12.18M14.01M14.75M
Capital Expenditures-136k-425k-269k-364k
Other Cashflows From Investing Activities528k528k528k-398k
Total Cashflows From Investing Activities-10.21M-9.43M14.85M-13.72M
Net Borrowings-1.43M-12k-9.51M-2.01M
Total Cash From Financing Activities-1.43M-12k-9.51M-2.01M
Effect Of Exchange Rate-195k15k375k-17k
Change In Cash1.32M2.75M19.73M-994k