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).

ABB 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 Aussie Broadband Limited (ABB), the free cash flow value is 10.29M.

All amounts in AUD

Operating Cash
Capital Expenditure
Free Cash Flow

Aussie Broadband 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).

ABB Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Aussie Broadband Limited (ASX:ABB).

30 Jun 202130 Jun 202030 Jun 201930 Jun 2018
Net Income-4.49M-12.3M-510.74k-1.08M
Change To Netincome15.1M8.89M39.07k39.07k
Change To Account Receivables-5.56M-3.96M-4.79M-1.66M
Change To Liabilities15.36M9.44M5.19M3.17M
Change To Inventory-3.81M-1.31M-160.87k210.28k
Change To Operating Activities1.13M637k89.42k85.51k
Total Cash From Operating Activities25.28M6.9M1.41M1.63M
Capital Expenditures-14.99M-3.9M-3.25M-434.12k
Total Cashflows From Investing Activities-17.13M-5.37M-4.44M-1.08M
Net Borrowings-11.49M19.54M5.15M-326.03k
Other Cashflows From Financing Activities1.48M-125k-1.9M-1.9M
Total Cash From Financing Activities27.42M19.41M3.13M-313.63k
Change In Cash35.58M20.95M101.96k235.54k
Issuance Of Stock37.44M37.44M37.44M12.4k