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).

AGJ 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 Agricultural Land Trust (AGJ), the free cash flow value is 198000.

All amounts in AUD

Operating Cash
198k
Capital Expenditure
-
Free Cash Flow
198000

Agricultural Land Trust 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).

AGJ Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Agricultural Land Trust (ASX:AGJ).

30 Jun 202030 Jun 201930 Jun 201830 Jun 2017
Net Income-127.23M13.74M577k-1.44M
Change To Netincome128.66M-13.25M-1.78M-1.78M
Change To Account Receivables-6.25M-2.79M-539k-71k
Change To Liabilities
Change To Operating Activities5.01M2.49M941k782k
Total Cash From Operating Activities198k188k-801k-725k
Total Cashflows From Investing Activities-17.7M-59.4M-40.55M-10M
Net Borrowings17.7M59.13M41.55M9.9M
Total Cash From Financing Activities17.7M59.13M41.55M9.9M
Change In Cash198k-83k199k-825k