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).

AMC 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 Amcor plc (AMC), the free cash flow value is 984.70M.

All amounts in USD

Operating Cash
1.38B
Capital Expenditure
-399.5M
Free Cash Flow
984.70M

Amcor plc 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).

AMC Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Amcor plc (ASX:AMC).

30 Jun 202030 Jun 201930 Jun 201830 Jun 2017
Net Income612.2M430.2M575.2M564M
Depreciation630.1M377.9M352.7M351.8M
Change To Netincome-5.8M-44.5M60.9M39.1M
Change To Account Receivables133.3M-83.7M700k-13.2M
Change To Liabilities-48.1M120.5M137M137.5M
Change To Inventory25.6M3.2M-95M-48.1M
Change To Operating Activities28.8M-33.3M-165.2M-127.2M
Total Cash From Operating Activities1.38B776.1M871.4M908.9M
Capital Expenditures-399.5M-332.2M-365M-379.3M
Other Cashflows From Investing Activities-200k-500k-700k-700k
Total Cashflows From Investing Activities37.9M10.2M-241.9M-632M
Dividends Paid-747.6M-666.1M-515.5M-480.7M
Net Borrowings123M-59.7M30.8M326.7M
Other Cashflows From Financing Activities-9.2M-38.2M-50.4M-52.6M
Total Cash From Financing Activities-1.24B-764.9M-542.7M-223M
Effect Of Exchange Rate-44.7M1M-27.5M-8.1M
Change In Cash141M-19.2M59.3M45.8M
Repurchase Of Stock-603.6M-20.2M-35.7M-40.2M
Issuance Of Stock1M19.3M28.1M23.8M