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).

## ALG 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 Ardent Leisure Group Limited (ALG), the free cash flow value is 61.26M.

All amounts in AUD

Operating Cash
167.84M
Capital Expenditure
-106.58M
Free Cash Flow
61.26M

Ardent Leisure Group 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).

## ALG Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Ardent Leisure Group Limited (ASX:ALG).

28 Jun 2022 29 Jun 2021 30 Jun 2020 25 Jun 2019
Net Income -97.43M -86.93M -136.09M -60.88M
Depreciation 66.23M 80.68M 89.22M 48.57M
Change To Netincome 190.39M 73.55M 85.18M 31.51M
Change To Account Receivables -9.04M 206k 10.87M -72k
Change To Liabilities 16.31M 20.46M 13.04M -6.07M
Change To Inventory -3.02M 1.53M -11.71M 1.42M
Change To Operating Activities -859k 816k 2.69M -1.77M
Total Cash From Operating Activities 167.84M 93.91M 52.72M 32.5M
Capital Expenditures -106.58M -37.21M -79.45M -68.3M
Investments -1.6M -1.6M -1.6M -1.6M
Total Cashflows From Investing Activities -147.31M -43.58M -81.99M -71.25M
Net Borrowings 15.56M -35.44M 51.25M 148.4M
Other Cashflows From Financing Activities -66.64M -52.17M 47.84M -18.73M
Total Cash From Financing Activities -51.08M -87.61M 98.95M 115.41M
Effect Of Exchange Rate 6.22M -9.37M -396k -872k
Change In Cash -24.34M -46.66M 69.28M 75.78M