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 92.40M.

All amounts in USD

Operating Cash
172.8M
Capital Expenditure
-80.4M
Free Cash Flow
92.40M

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 202130 Jun 202030 Jun 201930 Jun 2018
Net Income246.7M156.6M111.7M484.3M
Depreciation57.4M50.7M32.9M33.3M
Change To Netincome46.7M29.5M31.6M-299M
Change To Account Receivables-80.9M12.1M3.5M-6.9M
Change To Liabilities124.2M35.7M5M-28M
Change To Inventory-260.5M-14M2.4M-700k
Change To Operating Activities16.1M6.8M4.4M-12.2M
Total Cash From Operating Activities172.8M286.7M188.9M153.6M
Capital Expenditures-80.4M-60.6M-43.6M-45.7M
Investments-1.7M-11.9M-11.9M-11.9M
Total Cashflows From Investing Activities-84.7M-70.6M-123.7M476.8M
Dividends Paid-76.9M-61.2M-59.7M-61.1M
Net Borrowings-112.1M-37.9M-37.9M-170.9M
Other Cashflows From Financing Activities-20.5M-17M-12.6M-16.3M
Total Cash From Financing Activities-267.5M-198.3M-253.4M-340.6M
Effect Of Exchange Rate10.7M-6.4M-4.1M-16.6M
Change In Cash-168.7M11.4M-192.3M273.2M
Repurchase Of Stock-58M-82.2M-181.1M-92.3M