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 12.32M.

All amounts in AUD

Operating Cash
12.76M
Capital Expenditure
-440k
Free Cash Flow
12.32M

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 2022 30 Jun 2021 30 Jun 2020 30 Jun 2019
Net Income -536k -9.37M 517k 5.91M
Depreciation 3.96M 1.45M 2.46M 1.14M
Change To Netincome 836k 1.16M -468k -955k
Change To Account Receivables 4.37M 2.33M -620k -4.22M
Change To Liabilities 4.34M -5.45M 1.04M 1.5M
Change To Operating Activities -3.22M 100k 35k 1.02M
Total Cash From Operating Activities 12.76M 1.29M 8.05M 12.18M
Capital Expenditures -440k -321k -136k -425k
Other Cashflows From Investing Activities 774k 553k 528k 528k
Total Cashflows From Investing Activities -4.53M -1.7M -5.11M -9.43M
Net Borrowings -2.08M -1.69M -1.43M -12k
Total Cash From Financing Activities -2.08M -1.81M -1.43M -12k
Effect Of Exchange Rate 60k 32k -195k 15k
Change In Cash 6.22M -2.18M 1.32M 2.75M