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 4.74M.

All amounts in AUD

Operating Cash
5.42M
Capital Expenditure
-679k
Free Cash Flow
4.74M

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).

04 Jul 202105 Jul 202030 Jun 201901 Jul 2018
Net Income9.15M4.67M5.42M4.79M
Depreciation1.78M2.07M1.01M660k
Change To Netincome700k540k-76k59k
Change To Account Receivables-15.64M-477k629k-3.15M
Change To Liabilities10.44M2.15M-835k678k
Change To Operating Activities-464k3.85M-1.7M403k
Total Cash From Operating Activities5.42M14.12M4.75M3.16M
Capital Expenditures-679k-502k-899k-633k
Other Cashflows From Investing Activities-1.4M-1.4M-1.4M-1.4M
Total Cashflows From Investing Activities-3.18M-5.37M-733k-444k
Dividends Paid-7.34M-3.91M-3.6M-3.6M
Net Borrowings9k-966k-966k-724k
Total Cash From Financing Activities-7.33M-7.47M-3.6M-724k
Change In Cash-5.09M1.28M420k1.99M