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).

AKL 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 Auckland Real Estate Trust (AKL), the free cash flow value is -2.66M.

All amounts in AUD

Operating Cash
Capital Expenditure
Free Cash Flow

Auckland Real Estate Trust has a negative 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).

AKL Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Auckland Real Estate Trust (ASX:AKL).

30 Jun 202030 Jun 201930 Jun 201830 Jun 2017
Net Income9.53M2.56M-4.28M-2.8M
Change To Netincome-11.54M-5.55M2.6M2.39M
Change To Account Receivables-1.35M-621k-189k44k
Change To Liabilities215k2.16M-336k-571k
Total Cash From Operating Activities-2.66M-1.51M-2.2M-937k
Total Cashflows From Investing Activities-46.62M-32.41M-47.5M-311k
Net Borrowings25.13M-20.39M50.18M726k
Other Cashflows From Financing Activities-119k-1.06M-77k-77k
Total Cash From Financing Activities49.4M34.55M50.1M1.25M
Effect Of Exchange Rate-49k7k-5k-30k
Change In Cash68k636k402k-23k
Issuance Of Stock24.39M56M56M529k