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