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).

APA 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 APA Group (APA), the free cash flow value is 633.18M.

All amounts in AUD

Operating Cash
973.94M
Capital Expenditure
-340.75M
Free Cash Flow
633.18M

APA Group 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).

APA Cash Flow Statement History

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

30 Jun 201730 Jun 201630 Jun 201530 Jun 2014
Net Income236.85M179.62M559.93M343.7M
Depreciation570.02M520.89M208.2M156.23M
Change To Netincome12.1M18.45M-409.38M-858k
Change To Account Receivables-16.77M-15.74M-49.88M5.95M
Change To Liabilities27.29M-8.46M65.08M5.96M
Change To Inventory-371k-3.6M-3.94M-4.62M
Change To Operating Activities3.65M40.12M-5k-6.38M
Total Cash From Operating Activities973.94M862.43M562.19M431.54M
Capital Expenditures-340.75M-455.98M-2.81B-446.75M
Investments-35.25M-35.25M766.38M766.38M
Total Cashflows From Investing Activities-377.53M-673.63M-5.49B-571.3M
Dividends Paid-479.15M-440.15M-302.96M-300.87M
Net Borrowings199.64M-66.75M3.85B376.92M
Other Cashflows From Financing Activities-6.3M-9.68M385.9M-10.24M
Total Cash From Financing Activities-285.81M-516.58M5.33B65.81M
Effect Of Exchange Rate-610k362k-21k-21k
Change In Cash310M-327.42M404.91M-73.95M