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).

AGG 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 AngloGold Ashanti Limited (AGG), the free cash flow value is 936.00M.

All amounts in USD

Operating Cash
1.65B
Capital Expenditure
-718M
Free Cash Flow
936.00M

AngloGold Ashanti 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).

AGG Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for AngloGold Ashanti Limited (ASX:AGG).

31 Dec 202031 Dec 201931 Dec 201831 Dec 2017
Net Income953M-12M133M-191M
Depreciation576M602M582M712M
Change To Netincome363M622M264M613M
Change To Account Receivables-163M-138M-74M-86M
Change To Liabilities8M40M-46M16M
Change To Inventory-83M-67M-2M-67M
Total Cash From Operating Activities1.65B1.05B857M997M
Capital Expenditures-718M-709M-575M-675M
Investments29M-11M-14M-32M
Other Cashflows From Investing Activities8M-20M244M-158M
Total Cashflows From Investing Activities-476M-743M-335M-862M
Dividends Paid-38M-27M-24M-39M
Net Borrowings-131M3M-214M48M
Other Cashflows From Financing Activities-160M-153M-155M-157M
Total Cash From Financing Activities-329M-177M-393M-148M
Effect Of Exchange Rate25M25M-5M3M
Change In Cash874M127M124M-10M