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).

ANG 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 Austin Engineering Limited (ANG), the free cash flow value is 20.80M.

All amounts in AUD

Operating Cash
24.09M
Capital Expenditure
-3.29M
Free Cash Flow
20.80M

Austin Engineering 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).

ANG Cash Flow Statement History

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

30 Jun 202030 Jun 201930 Jun 201830 Jun 2017
Net Income5.18M-4.59M-11.94M-27.63M
Depreciation7.27M5.55M7.47M7.68M
Change To Netincome-1.27M3.6M22M23.59M
Change To Account Receivables7.98M18.7M-4.74M-16.95M
Change To Liabilities11.16M-17.28M2.11M19.26M
Change To Inventory-7.03M10.38M-4.52M-16.66M
Change To Operating Activities-1.69M-4.57M-2.77M-7.15M
Total Cash From Operating Activities24.09M13.8M1.2M-14.84M
Capital Expenditures-3.29M-7.74M-3.03M-6.74M
Total Cashflows From Investing Activities3.02M12.33M52k2.59M
Net Borrowings-15.46M-24.85M394k-4.54M
Total Cash From Financing Activities-15.46M-24.85M394k3.42M
Effect Of Exchange Rate737k-3k7k-74k
Change In Cash12.38M1.28M1.66M-8.91M