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).

APL 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 Asset Plus Limited (APL), the free cash flow value is 2.28M.

All amounts in NZD

Operating Cash
2.28M
Capital Expenditure
-
Free Cash Flow
2.28M

Asset Plus 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).

APL Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Asset Plus Limited (NZX:APL).

31 Mar 202231 Mar 202131 Mar 202031 Mar 2019
Net Income2.93M15.95M-14.69M3.8M
Change To Netincome795k-10.01M18.55M2.23M
Change To Account Receivables-701k-965k806k-128k
Change To Liabilities-231k-161k-734k-1.25M
Change To Operating Activities263k-117k-117k-117k
Total Cash From Operating Activities2.28M4.96M5.93M3.78M
Investments-1.2M-1.51M-1.51M-1.51M
Other Cashflows From Investing Activities-5k1.42M1.42M-4k
Total Cashflows From Investing Activities-41.56M-15.88M-39.27M37.16M
Dividends Paid-5.74M-4.02M-5.84M-5.83M
Net Borrowings46.3M-39.85M38.75M-34M
Total Cash From Financing Activities40.56M13.93M32.65M-40.63M
Change In Cash1.28M3.01M-683k309k