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