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).

AHY 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 Asaleo Care Limited (AHY), the free cash flow value is 66.63M.

All amounts in AUD

Operating Cash
Capital Expenditure
Free Cash Flow

Asaleo Care 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).

AHY Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Asaleo Care Limited (ASX:AHY).

31 Dec 202031 Dec 201931 Dec 201831 Dec 2017
Net Income32.3M22.09M-108.68M57.18M
Change To Netincome1.25M2.85M142.14M-9.37M
Change To Account Receivables17.93M-14.24M8.97M-378k
Change To Liabilities-1.22M-41.49M29.46M10.08M
Change To Inventory9.5M2.61M11.05M-2.83M
Total Cash From Operating Activities87.13M-9.9M81.25M85.51M
Capital Expenditures-20.5M-32.79M-21.45M-31.38M
Total Cashflows From Investing Activities-19.5M141.81M-29.96M-9.16M
Dividends Paid-10.86M-10.86M-32.59M-54.48M
Net Borrowings-33.99M-166.33M19M-16.5M
Other Cashflows From Financing Activities-406k-406k-1.4M-1.4M
Total Cash From Financing Activities-45.26M-166.33M-14.99M-75.47M
Effect Of Exchange Rate-423k236k838k-1.03M
Change In Cash21.95M-34.19M37.15M-143k