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 109.17M.

All amounts in AUD

Operating Cash
122.46M
Capital Expenditure
-13.29M
Free Cash Flow
109.17M

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 202030 Jun 201930 Jun 201830 Jun 2017
Net Income-70.27M21.55M15.11M17.21M
Depreciation72M16.21M13.39M10.61M
Change To Netincome41.71M-6.73M-5.04M-6.5M
Change To Account Receivables3.88M-1.25M-6M-11.86M
Change To Liabilities23.91M-3.71M8.67M5.31M
Change To Inventory6.09M-10.88M-5.25M-2.77M
Change To Operating Activities43.53M21.72M3.6M1M
Total Cash From Operating Activities122.46M36.91M24.47M12.99M
Capital Expenditures-13.29M-10.88M-11.03M-11.99M
Total Cashflows From Investing Activities-445.86M-64.79M-49.32M-22.69M
Dividends Paid-9.31M-13.3M-12.41M-10.48M
Net Borrowings229.88M27.82M39.09M12.22M
Other Cashflows From Financing Activities-5.09M-200k-251k-196k
Total Cash From Financing Activities424.19M23.82M26.42M1.54M
Effect Of Exchange Rate35k-63k-89k-10k
Change In Cash100.82M-4.12M1.49M-8.16M
Issuance Of Stock208.71M9.51M9.51M9.51M