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).

AST 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 AusNet Services Ltd (AST), the free cash flow value is -179.70M.

All amounts in AUD

Operating Cash
720.6M
Capital Expenditure
-900.3M
Free Cash Flow
-179.70M

AusNet Services Ltd has a negative 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).

AST Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for AusNet Services Ltd (ASX:AST).

31 Mar 202031 Mar 201931 Mar 201831 Mar 2017
Net Income290.7M253.9M291.4M255.1M
Depreciation418.4M404M390.6M376.7M
Change To Netincome-37.3M84.7M98.1M62M
Change To Liabilities
Change To Operating Activities2.7M18.7M54.5M-200k
Total Cash From Operating Activities720.6M813.7M886.4M742.8M
Capital Expenditures-900.3M-893.1M-732.7M-888.2M
Investments-249.7M-249.7M-249.7M-249.7M
Other Cashflows From Investing Activities8.8M8.8M8.8M8.8M
Total Cashflows From Investing Activities-1.12B-882.9M-716.8M-875.1M
Dividends Paid-365.7M-342.5M-306.2M-211.9M
Net Borrowings457.6M36.7M512.3M231.6M
Total Cash From Financing Activities219.1M-249.6M159.8M19.7M
Change In Cash-184.1M-318.8M329.4M-112.6M
Issuance Of Stock127.2M59.3M59.3M59.3M