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).

## APZ 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 Aspen Group (APZ), the free cash flow value is 4.97M.

All amounts in AUD

Operating Cash
4.97M
Capital Expenditure
-
Free Cash Flow
4.97M

Aspen 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).

## APZ Cash Flow Statement History

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

30 Jun 201730 Jun 201630 Jun 201530 Jun 2014
Net Income409k9.54M-23.43M-70.72M
Depreciation1.13M3.34M5.71M329k
Change To Netincome3.19M-8.94M21.33M80.99M
Change To Account Receivables430k-138k1.84M878k
Change To Liabilities10k47k-644k-7.86M
Change To Operating Activities-209k875k-1.38M36.88M
Total Cash From Operating Activities4.97M4.72M3.42M40.51M
Total Cashflows From Investing Activities-22.52M115.73M-46.43M194.09M
Dividends Paid-7.38M-10.34M-10.44M-17.94M
Other Cashflows From Financing Activities-359k-3.79M-9.9M-10.57M
Total Cash From Financing Activities-8.44M-93.5M19.17M-229.78M
Change In Cash-27.7M24M-25.39M3.69M