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 188.90M.

All amounts in AUD

Operating Cash
270M
Capital Expenditure
-81.1M
Free Cash Flow
188.90M

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 202131 Mar 202031 Mar 201931 Mar 2018
Net Income172.6M127.8M152.6M51.8M
Depreciation128.6M130.5M74.8M70.6M
Change To Netincome2.9M26.7M-5.3M82.8M
Change To Account Receivables-12.8M-2.2M-48.4M-27.2M
Change To Liabilities-36.6M-1.2M57.2M10.7M
Change To Inventory4.7M-2.7M-20M-2.3M
Total Cash From Operating Activities270M259M218.8M185.8M
Capital Expenditures-81.1M-121.1M-108.9M-73.4M
Investments2.6M1.2M-800k2.6M
Other Cashflows From Investing Activities3.4M5.5M700k6M
Total Cashflows From Investing Activities-124.7M-166.3M-166.1M-17.1M
Dividends Paid-70.4M-111M-98M-80.8M
Net Borrowings-308.6M306.7M29.6M-39.4M
Other Cashflows From Financing Activities-900k-1M-1M-1M
Total Cash From Financing Activities-379.9M172.7M-93M-227M
Effect Of Exchange Rate-20.7M10.3M1.3M-3.4M
Change In Cash-255.3M275.7M-39M-61.7M