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