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).

ARB 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 ARB Corporation Limited (ARB), the free cash flow value is 73.48M.

All amounts in AUD

Operating Cash
91.24M
Capital Expenditure
-17.76M
Free Cash Flow
73.48M

ARB Corporation 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).

ARB Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for ARB Corporation Limited (ASX:ARB).

30 Jun 202030 Jun 201930 Jun 201830 Jun 2017
Net Income57.3M57.14M50.97M49.15M
Depreciation17.91M10.38M9.34M10.01M
Change To Netincome2.06M4.16M2.69M128k
Change To Account Receivables647k-2.79M-5.39M-7M
Change To Liabilities-1.48M-4.69M4.1M7.66M
Change To Inventory11.42M-17.45M-21M-1.42M
Change To Operating Activities-2.14M1.81M-16k1.8M
Total Cash From Operating Activities91.24M49.97M44.77M62.21M
Capital Expenditures-17.76M-23.57M-39.15M-20.39M
Total Cashflows From Investing Activities-38.63M-23.55M-42.17M-22.2M
Dividends Paid-15.04M-23.78M-25.42M-26.13M
Net Borrowings-4.57M-4M4M4M
Total Cash From Financing Activities-19.61M-27.78M-21.42M-26.13M
Effect Of Exchange Rate101k632k356k-9k
Change In Cash33.1M-723k-18.46M13.87M