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).

ADH 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 Adairs Limited (ADH), the free cash flow value is 89.78M.

All amounts in AUD

Operating Cash
97.31M
Capital Expenditure
-7.53M
Free Cash Flow
89.78M

Adairs 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).

ADH Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Adairs Limited (ASX:ADH).

28 Jun 202030 Jun 201901 Jul 201802 Jul 2017
Net Income35.28M29.64M30.56M21.02M
Depreciation38.61M6.39M5.72M5.16M
Change To Netincome344k156k203k257k
Change To Account Receivables-818k-1.11M-1.9M2.11M
Change To Liabilities-994k5.39M1.05M11.8M
Change To Inventory7.08M-8.96M-576k-6.72M
Change To Operating Activities10.25M1.89M1.42M1.24M
Total Cash From Operating Activities97.31M35.02M39.09M27.64M
Capital Expenditures-7.53M-6.96M-7.09M-11.33M
Total Cashflows From Investing Activities-50.04M-6.96M-7.09M-11.33M
Dividends Paid-13.27M-24.05M-16.59M-16.59M
Net Borrowings-25.89M-25.89M-17M-17M
Other Cashflows From Financing Activities-865k-50k-50k-89k
Total Cash From Financing Activities-40.02M-24.1M-33.59M-16.68M
Effect Of Exchange Rate-33k34k-4k-4k
Change In Cash7.21M3.99M-1.59M-363k