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 3.00M.

All amounts in AUD

Operating Cash
6.9M
Capital Expenditure
-3.9M
Free Cash Flow
3.00M

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 202030 Jun 201930 Jun 201830 Jun 2017
Net Income-12.3M-510.74k-1.08M-2.53M
Depreciation5.07M1.15M900.88k1.13M
Change To Netincome203k39.07k39.07k39.07k
Change To Account Receivables-3.96M-4.79M-1.66M-757.26k
Change To Liabilities9.44M5.19M3.17M2.47M
Change To Inventory-1.31M-160.87k210.28k-272.41k
Change To Operating Activities9.32M89.42k85.51k117.01k
Total Cash From Operating Activities6.9M1.41M1.63M168.41k
Capital Expenditures-3.9M-3.25M-434.12k-885.63k
Total Cashflows From Investing Activities-5.37M-4.44M-1.08M-1.69M
Net Borrowings19.54M5.15M-326.03k444.19k
Other Cashflows From Financing Activities-125k-1.9M-1.9M-1.9M
Total Cash From Financing Activities19.41M3.13M-313.63k1.24M
Change In Cash20.95M101.96k235.54k-286.64k