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).

ARC 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 ARC Funds Limited (ARC), the free cash flow value is 187403.

All amounts in AUD

Operating Cash
Capital Expenditure
Free Cash Flow

ARC Funds 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).

ARC Cash Flow Statement History

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

30 Jun 202130 Jun 202030 Jun 201930 Jun 2018
Net Income-577.49k-1.15M-2.48M1.28M
Change To Netincome671.66k785.44k2.3M-2.49M
Change To Account Receivables9.67k-17.64k8.17k-3.67k
Change To Liabilities75.85k14.89k-6.06k2.05k
Change To Operating Activities7.71k7.71k7.71k7.71k
Total Cash From Operating Activities187.4k-366.01k-178.55k-1.21M
Total Cashflows From Investing Activities40.6k40.6k40.6k40.6k
Net Borrowings-200k200k200k200k
Total Cash From Financing Activities3.07M200k8.32k8.32k
Change In Cash3.3M-166.01k-170.22k-1.21M
Issuance Of Stock3.27M3.27M8.32k8.32k