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).

ASB 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 Austal Limited (ASB), the free cash flow value is 147.77M.

All amounts in AUD

Operating Cash
164.47M
Capital Expenditure
-16.7M
Free Cash Flow
147.77M

Austal 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).

ASB Cash Flow Statement History

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

30 Jun 202030 Jun 201930 Jun 201830 Jun 2017
Net Income88.98M61.38M37.53M15.35M
Depreciation43.22M40.22M35.76M30.38M
Change To Netincome-16.42M-3.16M-5.09M-6.28M
Change To Account Receivables86.01M-115.18M-4.27M24.59M
Change To Liabilities-81.94M78.78M65.08M-93.81M
Change To Inventory28.7M75.6M-74.56M-61.45M
Change To Operating Activities-8.28M12.09M6.68M11.87M
Total Cash From Operating Activities164.47M164.52M65.68M-37.89M
Capital Expenditures-16.7M-41.54M-22.93M-51.97M
Total Cashflows From Investing Activities-18.18M-37.75M-33.91M-53.51M
Dividends Paid-20.59M-19.21M-12.79M-12.26M
Net Borrowings-6.01M-10.74M-9.23M24.62M
Other Cashflows From Financing Activities-642k7.67M7.67M7.67M
Total Cash From Financing Activities-27.24M-21.31M-22.02M12.36M
Effect Of Exchange Rate1.94M8.19M1.8M5.19M
Change In Cash121M113.64M11.55M-73.85M