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).

AFL 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 AF Legal Group Limited (AFL), the free cash flow value is 1.57M.

All amounts in AUD

Operating Cash
Capital Expenditure
Free Cash Flow

AF Legal 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).

AFL Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for AF Legal Group Limited (ASX:AFL).

30 Jun 202030 Jun 201930 Jun 201830 Jun 2017
Net Income422.38k-1.2M-75.62k-240.85k
Change To Netincome114.02k152.03k152.03k152.03k
Change To Account Receivables200.49k-160.75k-91123.68k
Change To Liabilities419.43k-221.15k24.7k3.69k
Change To Operating Activities95.99k-12.32k-12.32k-12.32k
Total Cash From Operating Activities1.65M-1.27M-51.83k-213.49k
Capital Expenditures-78.44k-78.44k-78.44k-27.12k
Total Cashflows From Investing Activities-518.17k-3.19M-3.19M-27.12k
Net Borrowings-624.69k-652.35k-652.35k-652.35k
Total Cash From Financing Activities-624.69k4.81M4.81M7.71k
Change In Cash504.34k350.95k-51.83k-232.89k