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).

ABP 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 Abacus Property Group (ABP), the free cash flow value is 116.23M.

All amounts in AUD

Operating Cash
116.23M
Capital Expenditure
-
Free Cash Flow
116.23M

Abacus Property Group 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).

ABP Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Abacus Property Group (ASX:ABP).

30 Jun 201730 Jun 201630 Jun 201530 Jun 2014
Net Income285.1M185.89M133.5M108.27M
Depreciation670k4.26M4.36M4.44M
Change To Netincome-185.33M-87.87M-67.1M-26.56M
Change To Account Receivables20.41M-7.17M20.71M-10.93M
Change To Liabilities-24.62M
Change To Inventory-22.04M2.43M13.93M60.5M
Change To Operating Activities15.62M-7.32M11.71M6.45M
Total Cash From Operating Activities116.23M91.53M119.33M120.59M
Investments58.46M-118.2M-84.71M-93.37M
Total Cashflows From Investing Activities171.08M-191.98M-31.18M21.73M
Dividends Paid-63.77M-92.23M-93M-45.92M
Net Borrowings-222.98M194.92M-122.26M-167.59M
Other Cashflows From Financing Activities-1.23M-4.24M-2.98M-4.07M
Total Cash From Financing Activities-274.84M105.72M-111.26M-125.95M
Effect Of Exchange Rate30k133k-155k463k
Change In Cash12.5M5.4M-23.27M16.83M