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).

## IPH 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 IPH Limited (IPH), the free cash flow value is 90.83M.

All amounts in AUD

Operating Cash
92.65M
Capital Expenditure
-1.81M
Free Cash Flow
90.83M

IPH 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).

## IPH Cash Flow Statement History

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

30 Jun 202130 Jun 202030 Jun 201930 Jun 2018
Net Income53.6M54.75M53.11M40.67M
Depreciation34.07M32.77M10.64M9.91M
Change To Netincome-184k9.04M2.74M2M
Change To Account Receivables7.12M-682k-7.79M-8.42M
Change To Liabilities-5.85M-12.81M-529k-2.49M
Change To Operating Activities1.64M7.17M-2.54M2.19M
Total Cash From Operating Activities92.65M87.55M61.55M46.46M
Capital Expenditures-1.81M-2.12M-2.27M-745k
Total Cashflows From Investing Activities-10.84M-45.49M-27.95M-42.63M
Dividends Paid-49.95M-47.88M-45.38M-37.97M
Net Borrowings-43.6M54.45M23.6M39.02M
Total Cash From Financing Activities-93.55M6.57M-21.78M-1.67M
Effect Of Exchange Rate-17k-982k-2.77M-336k
Change In Cash-11.76M47.65M9.05M1.82M