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).

## ALD 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 Ampol Limited (ALD), the free cash flow value is 62.90M.

All amounts in AUD

Operating Cash
267.6M
Capital Expenditure
-204.7M
Free Cash Flow
62.90M

Ampol 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).

## ALD Cash Flow Statement History

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

31 Dec 202031 Dec 201931 Dec 201831 Dec 2017
Net Income-484.9M382.8M560.42M619.09M
Depreciation402.1M364.1M236.09M211.04M
Change To Netincome302.1M-174.8M-9.69M-10.92M
Change To Account Receivables625.6M-295.9M-258.8M-183.17M
Change To Liabilities-1.69B976.2M129.21M689.28M
Change To Inventory775.9M-493.4M78.79M-575.15M
Change To Operating Activities338.7M5.1M-81.16M-20.83M
Total Cash From Operating Activities267.6M844.3M596.5M735.03M
Capital Expenditures-204.7M-232.3M-292.47M-362.9M
Investments24.8M24.8M-115.35M-115.35M
Other Cashflows From Investing Activities-26.8M-26.8M-26.8M-26.8M
Total Cashflows From Investing Activities462.6M-139M-425.57M-800.35M
Dividends Paid-189.8M-239M-307.76M-292.11M
Net Borrowings-200.8M-179.2M86.42M158.09M
Other Cashflows From Financing Activities-1.2M-600k-1.6M-1M
Total Cash From Financing Activities-391.8M-679M-222.93M-135.02M
Effect Of Exchange Rate-5.8M2.6M13.62M13.62M
Change In Cash332.6M28.9M-38.38M-200.34M