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