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