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).

GEM 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 G8 Education Limited (GEM), the free cash flow value is 168.11M.

All amounts in AUD

Operating Cash
189.56M
Capital Expenditure
-21.45M
Free Cash Flow
168.11M

G8 Education 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).

GEM Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for G8 Education Limited (ASX:GEM).

31 Dec 202031 Dec 201931 Dec 201831 Dec 2017
Net Income-187.01M52.02M71.83M80.58M
Depreciation91.59M100.12M16.48M13.96M
Change To Netincome266.43M-213k1.05M4.68M
Change To Account Receivables8.68M7.12M-4.88M-13.36M
Change To Liabilities36.19M-11.26M9.63M730k
Change To Operating Activities7.01M8.43M4.12M-1.4M
Total Cash From Operating Activities189.56M153.99M105.95M92.01M
Capital Expenditures-21.45M-39.77M-36.82M-18.43M
Total Cashflows From Investing Activities-30.6M-83.72M-92.81M-86.21M
Dividends Paid-19.06M-44.49M-48.13M-62.79M
Net Borrowings-153.49M-40.7M41.02M-111.2M
Other Cashflows From Financing Activities-11.14M-33k-47k-9.7M
Total Cash From Financing Activities117.53M-85.22M-7.02M16.97M
Effect Of Exchange Rate-107k33k209k-27k
Change In Cash276.39M-14.92M6.33M22.74M
Issuance Of Stock301.21M301.21M139k200.66M