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).

AZJ 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 Aurizon Holdings Limited (AZJ), the free cash flow value is 751.20M.

All amounts in AUD

Operating Cash
1.25B
Capital Expenditure
-496.2M
Free Cash Flow
751.20M

Aurizon Holdings 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).

AZJ Cash Flow Statement History

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

30 Jun 202030 Jun 201930 Jun 201830 Jun 2017
Net Income615.9M476.5M483M-187.9M
Depreciation530.8M516.9M525.5M567.3M
Change To Netincome53.5M139.2M295.5M980.2M
Change To Account Receivables25.9M49.5M-90.4M16.8M
Change To Liabilities-2.9M181.9M72.8M-90.4M
Change To Inventory-26.2M-13.1M-2.8M28.9M
Change To Operating Activities-21.1M-58.6M-44.2M-5.1M
Total Cash From Operating Activities1.25B1.29B1.28B1.24B
Capital Expenditures-496.2M-411.7M-470.5M-446.6M
Other Cashflows From Investing Activities400k11.1M54.6M-34.7M
Total Cashflows From Investing Activities-371.3M-419.7M-427.9M-431.2M
Dividends Paid-513.8M-487.6M-462.1M-551.9M
Net Borrowings201.4M-251M16M-54.9M
Other Cashflows From Financing Activities-156.3M-141.4M-160M-173.4M
Total Cash From Financing Activities-871.9M-880.6M-908.6M-787.7M
Effect Of Exchange Rate-100k400k400k400k
Change In Cash4.1M-9.6M-53.9M19.5M
Repurchase Of Stock-403.2M-600k-302.5M-7.5M