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).

## AQZ 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 Alliance Aviation Services Limited (AQZ), the free cash flow value is 13.23M.

All amounts in AUD

Operating Cash
44.05M
Capital Expenditure
-30.81M
Free Cash Flow
13.23M

Alliance Aviation Services 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).

## AQZ Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Alliance Aviation Services Limited (ASX:AQZ).

30 Jun 202030 Jun 201930 Jun 201830 Jun 2017
Net Income26.97M22.73M18.11M18.55M
Depreciation35.15M30.85M30.61M26.36M
Change To Netincome6.61M8.79M3.29M5.39M
Change To Account Receivables-14.7M-7.76M-449k-3.96M
Change To Liabilities13.28M20.55M14.92M644k
Change To Inventory-28.7M-40.57M-31.08M-28.26M
Change To Operating Activities5.45M2.48M2.85M3M
Total Cash From Operating Activities44.05M37.01M38.26M21.7M
Capital Expenditures-30.81M-22M-14.86M-13.46M
Total Cashflows From Investing Activities-30.81M-22M-14.86M-13.46M
Dividends Paid-7.34M-12.13M-4.8M-1.87M
Net Borrowings-7.25M-5.2M-9.95M-5.05M
Other Cashflows From Financing Activities-1.39M-1.39M-1.39M-1.39M
Total Cash From Financing Activities75.89M-17.33M-14.76M-6.92M
Effect Of Exchange Rate59k76k-263k44k
Change In Cash89.18M-2.24M8.38M1.37M
Issuance Of Stock91.86M91.86M91.86M91.86M