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).

AGL 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 AGL Energy Limited (AGL), the free cash flow value is 1.398B.

All amounts in AUD

Operating Cash
2.16B
Capital Expenditure
-758M
Free Cash Flow
1.398B

AGL Energy 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).

AGL Cash Flow Statement History

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

30 Jun 202030 Jun 201930 Jun 201830 Jun 2017
Net Income1.01B905M1.58B539M
Depreciation574M501M568M484M
Change To Netincome-217M233M-746M634M
Change To Account Receivables137M72M56M31M
Change To Liabilities-19M99M534M-98M
Change To Inventory-14M-74M-32M73M
Change To Operating Activities501M-261M181M-772M
Total Cash From Operating Activities2.16B1.6B2.14B891M
Capital Expenditures-758M-915M-720M-503M
Investments-40M-87M-64M-44M
Total Cashflows From Investing Activities-879M-904M-629M-302M
Dividends Paid-719M-774M-682M-517M
Net Borrowings94M-264M-513M326M
Total Cash From Financing Activities-1.25B-1.04B-1.21B-687M
Effect Of Exchange Rate1M1M1M1M
Change In Cash26M-348M309M-98M
Repurchase Of Stock-627M-5M-10M-480M