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).

A2B 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 A2B Australia Limited (A2B), the free cash flow value is 26.43M.

All amounts in AUD

Operating Cash
37.98M
Capital Expenditure
-11.54M
Free Cash Flow
26.43M

A2B Australia 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).

A2B Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for A2B Australia Limited (ASX:A2B).

30 Jun 202030 Jun 201930 Jun 201830 Jun 2017
Net Income-23.82M11.82M-2.22M-90.55M
Depreciation15.08M12.26M12.79M12.39M
Change To Netincome15.91M446k16.73M110.9M
Change To Account Receivables40.12M-5.92M-1.46M565k
Change To Liabilities-11.18M2.51M5M78k
Change To Inventory462k185k-2.24M310k
Change To Operating Activities71k632k823k290k
Total Cash From Operating Activities37.98M26.39M29.85M37.84M
Capital Expenditures-11.54M-10.08M-11.71M-8.63M
Total Cashflows From Investing Activities-18.34M-19.51M-19.57M204.99M
Dividends Paid-9.63M-9.63M-16.86M-24.09M
Net Borrowings-3.36M-351k-624k-105.99M
Other Cashflows From Financing Activities-70k-70k-70k-70k
Total Cash From Financing Activities-13.06M-9.98M-17.48M-226.42M
Effect Of Exchange Rate13k24k24k24k
Change In Cash6.59M-3.08M-7.2M16.42M