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).

AFI 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 Australian Foundation Investment Company Limited (AFI), the free cash flow value is 277.76M.

All amounts in AUD

Operating Cash
Capital Expenditure
Free Cash Flow

Australian Foundation Investment Company 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).

AFI Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Australian Foundation Investment Company Limited (NZX:AFI).

30 Jun 2022 30 Jun 2021 30 Jun 2020 30 Jun 2019
Net Income 360.54M 234.65M 239.93M 405.93M
Change To Netincome -127.48M -25.4M -10.14M -74.02M
Change To Account Receivables -6.46M -12.79M 22.78M 9.61M
Change To Liabilities 28.23M 949k -1.02M 1.58M
Change To Operating Activities -26.77M -57k 706k -417k
Total Cash From Operating Activities 277.76M 178.77M 254.63M 351.76M
Investments -5.25M 52.78M -105.78M 58.02M
Other Cashflows From Investing Activities -13.95M -23.8M -20.39M -6.41M
Total Cashflows From Investing Activities -19.19M 28.98M -126.18M 51.62M
Dividends Paid -220.92M -221.8M -223.43M -295.89M
Net Borrowings 10M 10M 10M -100k
Other Cashflows From Financing Activities -151k -145k -142k -141k
Total Cash From Financing Activities -211.07M -221.95M -223.57M -296.13M
Change In Cash 47.5M -14.2M -95.11M 107.25M