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).

AMA 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 AMA Group Limited (AMA), the free cash flow value is 39.59M.

All amounts in AUD

Operating Cash
52.1M
Capital Expenditure
-12.51M
Free Cash Flow
39.59M

AMA 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).

AMA Cash Flow Statement History

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

30 Jun 202130 Jun 202030 Jun 201930 Jun 2018
Net Income-96.95M-70.27M21.55M15.11M
Depreciation80.29M69.25M16.21M13.39M
Change To Netincome75.71M45.2M-6.73M-5.04M
Change To Account Receivables-614k3.88M-1.25M-6M
Change To Liabilities1.57M23.91M-3.71M8.67M
Change To Inventory6.82M6.09M-10.88M-5.25M
Change To Operating Activities-17.04M43.53M21.72M3.6M
Total Cash From Operating Activities52.1M122.46M36.91M24.47M
Capital Expenditures-12.51M-13.29M-10.88M-11.03M
Other Cashflows From Investing Activities63.18M25k25k25k
Total Cashflows From Investing Activities33.26M-445.86M-64.79M-49.32M
Net Borrowings-134.06M229.88M27.82M39.09M
Total Cash From Financing Activities-134.06M424.19M23.82M26.42M
Effect Of Exchange Rate-21k35k-63k-89k
Change In Cash-48.71M100.82M-4.12M1.49M