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).

ASX 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 ASX Limited (ASX), the free cash flow value is 97.60M.

All amounts in AUD

Operating Cash
203.4M
Capital Expenditure
-105.8M
Free Cash Flow
97.60M

ASX 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).

ASX Cash Flow Statement History

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

30 Jun 202230 Jun 202130 Jun 202030 Jun 2019
Net Income508.5M480.9M498.6M492M
Depreciation26.2M28.6M25M13.9M
Change To Netincome24.3M12.5M23.6M2.2M
Change To Account Receivables-26.1M9.1M3.2M-15.6M
Change To Liabilities35.9M20.2M13.6M7.8M
Change To Operating Activities-326.9M4.49B188.8M248.5M
Total Cash From Operating Activities203.4M5.09B1.34B89.9M
Capital Expenditures-105.8M-101.3M-82.2M-84.6M
Investments-21.1M-24.1M-23.6M376.7M
Total Cashflows From Investing Activities-126.9M-125.4M-105.8M292.1M
Dividends Paid-440.6M-454.8M-446.6M-432.7M
Net Borrowings-10.2M-9.6M-6.1M-6.1M
Total Cash From Financing Activities-450.8M-464.4M-702.6M-432.7M
Effect Of Exchange Rate-11.3M-5.4M-1.2M6.6M
Change In Cash-385.6M4.5B525M-44.1M