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