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