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
87.13M
Capital Expenditure
-20.5M
Free Cash Flow
66.63M

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
Depreciation25.77M25.48M26.04M28.71M
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