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).

## ADSL 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 Allied Digital Services Limited (ADSL), the free cash flow value is 112.50M.

All amounts in INR

Operating Cash
146.3M
Capital Expenditure
-33.8M
Free Cash Flow
112.50M

Allied Digital Services 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).

## ADSL Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Allied Digital Services Limited (NSE:ADSL).

31 Mar 202231 Mar 202131 Mar 202031 Mar 2019
Net Income610.4M192.5M192.5M123.7M
Depreciation202.7M215.4M222.1M222.1M
Change To Netincome-52.8M-17.6M9.4M374.6M
Change To Account Receivables-344.8M382.9M-60.3M-461.7M
Change To Liabilities-126M37.4M361M-210.7M
Change To Inventory-31.7M2.6M-10.1M-9.7M
Change To Operating Activities-111.5M-319.1M-408.6M375.1M
Total Cash From Operating Activities146.3M494.1M306M191.3M
Capital Expenditures-33.8M-169.5M-163.6M-163.6M
Other Cashflows From Investing Activities-25.8M48.5M51.7M41.1M
Total Cashflows From Investing Activities-59.6M-121M-105.3M52.5M
Dividends Paid-38M-25.1M-25.1M-25.1M
Net Borrowings-61M5.9M-132.7M-219.8M
Other Cashflows From Financing Activities22.1M-11.1M-69.9M-100.3M
Total Cash From Financing Activities-76.9M-30.3M-202.6M-320.1M
Change In Cash9.8M342.9M-1.9M-76.2M