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 555.00M.

All amounts in AUD

Operating Cash
1.25B
Capital Expenditure
-695M
Free Cash Flow
555.00M

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 202130 Jun 202030 Jun 201930 Jun 2018
Net Income-2.06B1.01B905M1.58B
Depreciation536M574M501M568M
Change To Netincome3.47B-217M233M-746M
Change To Account Receivables-324M137M72M56M
Change To Liabilities-313M-22M99M534M
Change To Inventory-1M-14M-74M-32M
Change To Operating Activities-231M501M-261M181M
Total Cash From Operating Activities1.25B2.11B1.6B2.14B
Capital Expenditures-695M-714M-915M-720M
Investments-20M-40M-87M-64M
Total Cashflows From Investing Activities-937M-835M-904M-629M
Dividends Paid-510.8M-719M-774M-682M
Net Borrowings212M94M-264M-513M
Total Cash From Financing Activities-366M-1.25B-1.04B-1.21B
Change In Cash-53M26M-348M309M
Repurchase Of Stock-5M-627M-5M-10M