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