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