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