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).

## AX1 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 Accent Group Limited (AX1), the free cash flow value is 142.84M.

All amounts in AUD

Operating Cash
166.67M
Capital Expenditure
-23.84M
Free Cash Flow
142.84M

Accent 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).

## AX1 Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Accent Group Limited (ASX:AX1).

28 Jun 202030 Jun 201901 Jul 201802 Jul 2017
Net Income55.68M53.87M43.96M29.16M
Depreciation105.84M28.27M24.13M21.4M
Change To Netincome-5.09M-5.12M-5.21M10.58M
Change To Account Receivables-5.94M-11.74M3.74M5.35M
Change To Liabilities11.62M33.33M-9.95M1.39M
Change To Inventory4.56M-32.91M13.39M-22.46M
Total Cash From Operating Activities166.67M65.69M70.07M45.42M
Capital Expenditures-23.84M-24.84M-15.93M-23.89M
Total Cashflows From Investing Activities-32.79M-36.64M-16.32M-54.75M
Dividends Paid-48.76M-44.65M-32.54M-32.48M
Net Borrowings-67.31M12.5M-29.5M40M
Total Cash From Financing Activities-115.22M-30.46M-60.27M10.5M
Effect Of Exchange Rate-445k-658k-388k-62k
Change In Cash18.21M-2.07M-6.91M1.11M
Issuance Of Stock844k1.78M1.85M3.06M