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).

LEP 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 ALE Property Group (LEP), the free cash flow value is 29.50M.

All amounts in AUD

Operating Cash
29.51M
Capital Expenditure
-11k
Free Cash Flow
29.50M

ALE Property Group 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).

LEP Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for ALE Property Group (ASX:LEP).

30 Jun 201730 Jun 201630 Jun 201530 Jun 2014
Net Income130.04M91.18M99.36M37.19M
Depreciation19k15k13k17k
Change To Netincome-101.69M-62.02M-70.97M-15.17M
Change To Account Receivables20k37k634k-770k
Change To Liabilities6k27k24k5M
Change To Operating Activities680k-193k-799k-447k
Total Cash From Operating Activities29.51M29.43M28.84M29.9M
Capital Expenditures-11k-34k-34k-6k
Total Cashflows From Investing Activities-86k-400k1.2M4.45M
Dividends Paid-39.64M-35.92M-32.58M-27.65M
Net Borrowings40M40M-102.6M117.33M
Other Cashflows From Financing Activities-8.12M-8.12M-10k-28.72M
Total Cash From Financing Activities-7.76M-35.92M-135.19M60.96M
Change In Cash21.67M-6.89M-105.15M95.31M