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