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).

ACF 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 Acrow Formwork and Construction Services Limited (ACF), the free cash flow value is 225145.

All amounts in AUD

Operating Cash
Capital Expenditure
Free Cash Flow

Acrow Formwork and Construction Services 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).

ACF Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Acrow Formwork and Construction Services Limited (ASX:ACF).

30 Jun 202030 Jun 201930 Jun 201830 Jun 2017
Net Income3.01M4.95M10.51M-613.39k
Change To Netincome1.86M818.23k-10.43M13.25k
Change To Account Receivables853.79k-2.02M229.55k8.38k
Change To Liabilities-1.05M2.76M2.05M-138.77k
Change To Inventory-610.38k-954.93k164.41k164.41k
Change To Operating Activities-383.68k-261.12k1.03M1.03M
Total Cash From Operating Activities13.33M8.56M4.01M-730.54k
Capital Expenditures-13.1M-9.78M-1.09M-1.09M
Total Cashflows From Investing Activities-22.23M-14.36M-757.8k-757.8k
Dividends Paid-1.41M-2.11M-2.11M-2.11M
Net Borrowings11.58M6.94M-24.81M-24.81M
Other Cashflows From Financing Activities-2.57M-803.17k-2.15M-2.15M
Total Cash From Financing Activities12.85M4.18M1.19M1.19M
Change In Cash3.95M-1.63M4.44M-699.47k
Issuance Of Stock5.25M150k28.15M28.15M