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).

AMP 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 AMP Limited (AMP), the free cash flow value is -2.825B.

All amounts in AUD

Operating Cash
-2.74B
Capital Expenditure
-83M
Free Cash Flow
-2.825B

AMP Limited has a negative 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).

AMP Cash Flow Statement History

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

31 Dec 202031 Dec 201931 Dec 201831 Dec 2017
Net Income177M-2.47B28M848M
Depreciation99M140M46M48M
Change To Netincome6.65B-9.31B2.8B-6.14B
Change To Account Receivables281M-567M-569M-152M
Change To Liabilities
Change To Operating Activities-8.93B3.98B-5.55B3.52B
Total Cash From Operating Activities-2.74B-7.77B-3.98B-1.4B
Capital Expenditures-83M-55M-37M-46M
Investments1.41B8.2B4.36B-2.61B
Other Cashflows From Investing Activities2.34B2.34B2.34B2.34B
Total Cashflows From Investing Activities3.21B8.15B4.21B-2.95B
Net Borrowings-1.63B-320M-726M2.8B
Other Cashflows From Financing Activities-17M-21M1.36B1B
Total Cash From Financing Activities-1.99B308M-77M2.77B
Effect Of Exchange Rate-4M2M13M-8M
Change In Cash-5.42B687M160M-1.59B