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).

ARF 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 Arena REIT (ARF), the free cash flow value is 28.99M.

All amounts in AUD

Operating Cash
Capital Expenditure
Free Cash Flow

Arena REIT 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).

ARF Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Arena REIT (ASX:ARF).

30 Jun 201730 Jun 201630 Jun 201530 Jun 2014
Net Income96.79M72.62M60.97M44.56M
Change To Netincome-68.02M-46.97M-39.2M-26.77M
Change To Account Receivables-47k79k890k1.15M
Change To Liabilities215k303k150k783k
Change To Operating Activities-92k54k51k51k
Total Cash From Operating Activities28.99M26.19M22.93M20.31M
Total Cashflows From Investing Activities-40.59M-15.44M-18.41M-54.39M
Dividends Paid-21.56M-18.32M-19.23M-17.19M
Net Borrowings32.92M6.65M-2.58M76.23M
Other Cashflows From Financing Activities-131k-519k-770k-862k
Total Cash From Financing Activities11.23M-12.19M2.42M33.03M
Change In Cash-364k-1.44M6.94M-1.05M