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).

ANN 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 Ansell Limited (ANN), the free cash flow value is 226.10M.

All amounts in USD

Operating Cash
290.9M
Capital Expenditure
-64.8M
Free Cash Flow
226.10M

Ansell 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).

ANN Cash Flow Statement History

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

30 Jun 202030 Jun 201930 Jun 201830 Jun 2017
Net Income158.7M111.7M484.3M147.7M
Depreciation50.7M32.9M33.3M31M
Change To Netincome29.5M31.6M-299M32.9M
Change To Account Receivables12.1M3.5M-6.9M8.2M
Change To Liabilities36.6M5M-28M7.5M
Change To Inventory-14M2.4M-700k-38M
Change To Operating Activities6.8M4.4M-12.2M7.2M
Total Cash From Operating Activities290.9M188.9M153.6M216.2M
Capital Expenditures-64.8M-43.6M-45.7M-51M
Investments-11.9M-11.9M-11.9M-11.9M
Total Cashflows From Investing Activities-74.8M-123.7M476.8M-107.9M
Dividends Paid-61.2M-59.7M-61.1M-60.3M
Net Borrowings-37.9M-37.9M-170.9M24.3M
Other Cashflows From Financing Activities-17M-12.6M-16.3M-21.7M
Total Cash From Financing Activities-198.3M-253.4M-340.6M-66.4M
Effect Of Exchange Rate-6.4M-4.1M-16.6M2M
Change In Cash11.4M-192.3M273.2M43.9M
Repurchase Of Stock-82.2M-181.1M-92.3M-8.7M