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).

AWC 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 Alumina Limited (AWC), the free cash flow value is 154.40M.

All amounts in USD

Operating Cash
154.4M
Capital Expenditure
-
Free Cash Flow
154.40M

Alumina 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).

AWC Cash Flow Statement History

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

31 Dec 202031 Dec 201931 Dec 201831 Dec 2017
Net Income146.6M214M635.4M339.8M
Change To Netincome7.4M151.9M5.2M-81.6M
Change To Liabilities-100k-300k
Change To Operating Activities500k-1M700k1.2M
Total Cash From Operating Activities154.4M364.6M641.3M259.5M
Investments11.3M39.2M20.8M-16.2M
Total Cashflows From Investing Activities11.3M39.2M20.8M-16.2M
Dividends Paid-160.5M-532.8M-515.5M-210.2M
Net Borrowings-10M-16.2M-16.2M-16.2M
Total Cash From Financing Activities-171.4M-571.6M-516.7M-212.2M
Effect Of Exchange Rate900k-800k-1.6M300k
Change In Cash-4.8M-168.6M143.8M31.4M
Repurchase Of Stock-900k-900k-1.2M-2M