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).

ALQ 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 ALS Limited (ALQ), the free cash flow value is 167.90M.

All amounts in AUD

Operating Cash
286.8M
Capital Expenditure
-118.9M
Free Cash Flow
167.90M

ALS 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).

ALQ Cash Flow Statement History

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

31 Mar 2022 31 Mar 2021 31 Mar 2020 31 Mar 2019
Net Income 190.5M 169.6M 127.8M 152.6M
Depreciation 134.7M 128.6M 130.5M 74.8M
Change To Netincome -14.1M 2.9M 26.7M -5.3M
Change To Account Receivables -55.9M -12.8M -2.2M -48.4M
Change To Liabilities 50.1M -36.6M -1.2M 57.2M
Change To Inventory -6.8M 4.7M -2.7M -20M
Total Cash From Operating Activities 286.8M 265.8M 259M 218.8M
Capital Expenditures -118.9M -76.9M -121.1M -108.9M
Investments -224M 2.6M 1.2M -800k
Other Cashflows From Investing Activities 1.9M 3.4M 5.5M 700k
Total Cashflows From Investing Activities -405.9M -120.5M -166.3M -166.1M
Dividends Paid -131.3M -70.4M -111M -98M
Net Borrowings 208.7M -308.6M 306.7M 29.6M
Total Cash From Financing Activities 77.4M -379.9M 172.7M -93M
Effect Of Exchange Rate -4.1M -20.7M 10.3M 1.3M
Change In Cash -45.8M -255.3M 275.7M -39M