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).

ASH 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 Ashley Services Group Limited (ASH), the free cash flow value is 13.62M.

All amounts in AUD

Operating Cash
Capital Expenditure
Free Cash Flow

Ashley Services Group 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).

ASH Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Ashley Services Group Limited (ASX:ASH).

05 Jul 202030 Jun 201901 Jul 201830 Jun 2017
Net Income4.67M5.42M4.79M-5.97M
Change To Netincome540k-76k59k7.78M
Change To Account Receivables-477k629k-3.15M1.39M
Change To Liabilities2.15M-835k678k-3.57M
Change To Operating Activities3.85M-1.7M403k-1.09M
Total Cash From Operating Activities14.12M4.75M3.16M2.94M
Capital Expenditures-502k-899k-633k-719k
Total Cashflows From Investing Activities-5.37M-733k-444k-171k
Dividends Paid-3.91M-3.6M-3.6M-3.6M
Net Borrowings-966k-966k-724k-102k
Other Cashflows From Financing Activities-2.6M-2.6M-2.6M-2.6M
Total Cash From Financing Activities-7.47M-3.6M-724k-102k
Change In Cash1.28M420k1.99M2.67M