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).

ABC 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 Adbri Limited (ABC), the free cash flow value is 119.80M.

All amounts in AUD

Operating Cash
256.2M
Capital Expenditure
-136.4M
Free Cash Flow
119.80M

Adbri 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).

ABC Cash Flow Statement History

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

31 Dec 202031 Dec 201931 Dec 201831 Dec 2017
Net Income93.7M47.3M185.3M182.7M
Depreciation91.5M91.8M85.4M80.7M
Change To Netincome17.6M66.4M-10.9M-8.3M
Change To Account Receivables20.1M3M16.9M-53M
Change To Liabilities16.2M-2.9M-8.9M23.7M
Change To Inventory3.1M-3.2M-2.1M-9M
Change To Operating Activities-10.7M11.9M-7.6M11.1M
Total Cash From Operating Activities256.2M193.2M244.7M224.2M
Capital Expenditures-136.4M-91.6M-112.7M-89.1M
Other Cashflows From Investing Activities-2M-2.7M-2M-3.1M
Total Cashflows From Investing Activities-133.4M-89M-110.9M-154.1M
Dividends Paid-63.6M-71.72M-136.57M-103.99M
Net Borrowings-82.8M12.2M89M118.5M
Total Cash From Financing Activities-145.3M-81.3M-97.4M-34M
Effect Of Exchange Rate-300k-300k-100k-100k
Change In Cash-22.8M22.9M36.3M36.1M
Issuance Of Stock1.1M4.3M2.2M3.5M