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).

## ANZ 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 Australia and New Zealand Banking Group Limited (ANZ), the free cash flow value is -5.074B.

All amounts in AUD

Operating Cash
-5.07B
Capital Expenditure
-
Free Cash Flow
-5.074B

Australia and New Zealand Banking Group Limited has a negative 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).

## ANZ Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Australia and New Zealand Banking Group Limited (NZX:ANZ).

30 Sep 202130 Sep 202030 Sep 201930 Sep 2018
Net Income6.16B3.58B5.95B6.4B
Depreciation653M734M354M378M
Change To Netincome-6.93B1.09B5.25B7.72B
Change To Liabilities
Change To Operating Activities-5.41B-3.65B-15.69B-25.27B
Total Cash From Operating Activities-5.07B409M-11.56B-1.64B
Investments10.81B-11.39B-2.62B-3.21B
Other Cashflows From Investing Activities-561M-1.39B292M1.23B
Total Cashflows From Investing Activities10.26B-11.46B-206M166M
Dividends Paid-2.83B-2.86B-4.47B-4.56B
Net Borrowings-15.41B-9.45B2.94B9.18B
Other Cashflows From Financing Activities58.21B51.88B7.01B12.21B
Total Cash From Financing Activities39.22B39.44B4.25B14.83B
Effect Of Exchange Rate-1.07B-2.08B4.17B3.56B
Change In Cash43.34B26.3B-3.34B16.92B
Repurchase Of Stock-733M-122M-1.23B-1.99B