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 3.65M.

All amounts in NZD

Operating Cash
4.5M
Capital Expenditure
-847k
Free Cash Flow
3.65M

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 202130 Jun 202030 Jun 201930 Jun 2018
Net Income2.02M767k1.26M1.53M
Depreciation692k784k626k495k
Change To Netincome-237k403k733k569k
Change To Account Receivables1.63M-653k-2.09M-3.24M
Change To Liabilities-200k-171k2.69M2.49M
Change To Inventory245k-99k-75k-104k
Total Cash From Operating Activities4.5M767k3.07M1.78M
Capital Expenditures-847k-794k-346k-248k
Investments-1.16M-11k-22k-22k
Total Cashflows From Investing Activities-3.56M322k-466k-2.87M
Dividends Paid-214k-357k-323k-323k
Net Borrowings-749k-719k-1.2M668k
Other Cashflows From Financing Activities-204k-228k-593k-273k
Total Cash From Financing Activities1.52M-1.3M-874k72k
Change In Cash2.46M-215k1.73M-1.01M
Issuance Of Stock2.69M2.69M1.5M1.5M