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
Capital Expenditure
Free Cash Flow

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
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