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