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).

ATM 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 The a2 Milk Company Limited (ATM), the free cash flow value is 198.86M.

All amounts in NZD

Operating Cash
Capital Expenditure
Free Cash Flow

The a2 Milk Company 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).

ATM Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for The a2 Milk Company Limited (NZX:ATM).

30 Jun 2022 30 Jun 2021 30 Jun 2020 30 Jun 2019
Net Income 122.62M 80.66M 385.84M 287.74M
Depreciation 17.69M 7.38M 4.28M 2.02M
Change To Netincome 26.24M -20.15M 3.62M 5.69M
Change To Account Receivables -3.56M 5.42M -4.45M -7.12M
Change To Liabilities 69.5M -14.85M 110.91M 65.45M
Change To Inventory -19.68M 35.13M -38.88M -44.35M
Change To Operating Activities -20.85M 28.52M -6.64M -13.68M
Total Cash From Operating Activities 203.8M 89.42M 427.41M 289.07M
Capital Expenditures -4.94M -5.67M -5.8M -2.65M
Investments -450M -39.84M -21.86M -162.34M
Total Cashflows From Investing Activities -669.99M -64.37M -29.08M -165.7M
Net Borrowings 22.91M -3.23M -1.77M -1.77M
Other Cashflows From Financing Activities -9k -19k -71k -41k
Total Cash From Financing Activities 9.64M -1.04M -11.99M 2.93M
Effect Of Exchange Rate 18.7M -3.03M 3.03M -1.95M
Change In Cash -437.84M 20.97M 389.37M 124.35M
Repurchase Of Stock -13.31M -13.31M -12.65M -12.65M
Issuance Of Stock 45k 2.21M 2.51M 2.97M