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).

ALF 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 Farmers Limited (ALF), the free cash flow value is 3.44M.

All amounts in NZD

Operating Cash
Capital Expenditure
Free Cash Flow

Allied Farmers 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).

ALF Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Allied Farmers Limited (NZX:ALF).

30 Jun 2022 30 Jun 2021 30 Jun 2020 30 Jun 2019
Net Income 2.88M 2.02M 767k 1.26M
Depreciation 694k 691k 784k 626k
Change To Netincome -353k -237k 403k 733k
Change To Account Receivables 267k 1.63M -653k -2.09M
Change To Liabilities -188k -200k -171k 2.69M
Change To Inventory -23k 245k -99k -75k
Total Cash From Operating Activities 3.44M 4.5M 767k 3.07M
Investments -1.5M -1.16M -11k -22k
Total Cashflows From Investing Activities 954k -2.87M 322k -466k
Net Borrowings -3.85M -1.45M -719k -1.2M
Other Cashflows From Financing Activities -535k -204k -228k -593k
Total Cash From Financing Activities -4.39M 821k -1.3M -874k
Change In Cash 5k 2.46M -215k 1.73M