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).

ABY 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 Adore Beauty Group Limited (ABY), the free cash flow value is 4.04M.

All amounts in AUD

Operating Cash
4.24M
Capital Expenditure
-206k
Free Cash Flow
4.04M

Adore Beauty Group 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).

ABY Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Adore Beauty Group Limited (ASX:ABY).

30 Jun 202130 Jun 202030 Jun 201930 Jun 2018
Net Income845k-1.23M951.18k1.67M
Depreciation718k745k214.21k53.8k
Change To Netincome1.42M3.46M18.51k-365.98k
Change To Account Receivables1.43M-1.46M-99.22k-99.22k
Change To Liabilities1.9M9.18M1.48M
Change To Inventory-231k-7.59M-1.05M-1.05M
Change To Operating Activities67k-541k301.72k301.72k
Total Cash From Operating Activities4.24M4.78M1.39M1.36M
Capital Expenditures-206k-444k-836.24k-292.42k
Total Cashflows From Investing Activities-1.99M-1.59M-1.27M-559.38k
Net Borrowings-3.7M2.36M601.17k-23.28k
Other Cashflows From Financing Activities-9.41M-221k-75.98k-47.97k
Total Cash From Financing Activities10.19M11.43M-28.28k-421.25k
Change In Cash12.44M14.62M98.6k378.29k
Repurchase Of Stock-17M-17M-17M-17M
Issuance Of Stock40.29M10.71M10.71M10.71M