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).

DOW 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 Downer EDI Ltd (DOW), the free cash flow value is 238.00M.

All amounts in

Operating Cash
Capital Expenditure
Free Cash Flow

Downer EDI Ltd 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).

DOW Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Downer EDI Ltd (NZX:DOW).

30 Jun 2017 30 Jun 2016 30 Jun 2015 30 Jun 2014
Net Income 181.5M 180.6M 210.2M 216M
Depreciation 220.2M 258.7M 253.1M 266.4M
Change To Netincome 10.3M 36.4M -11.4M 37.9M
Change To Account Receivables -159.8M -23.4M 121.3M 341.8M
Change To Liabilities 160.7M -71.9M -61.6M -203.8M
Change To Inventory 38.7M 18.5M 40.2M -32.5M
Change To Operating Activities -13M 46.3M -68M -44.8M
Total Cash From Operating Activities 441.6M 447.8M 486.5M 583.4M
Capital Expenditures -203.6M -185.7M -177.6M -379.5M
Investments 600k -900k -53.1M -15.5M
Other Cashflows From Investing Activities 1.2M 1.2M 1.2M 600k
Total Cashflows From Investing Activities -995.8M -205.5M -498.2M -278.8M
Dividends Paid -110.6M -113.1M -114.8M -95.6M
Net Borrowings -48.8M 93.8M 79.7M -260.9M
Total Cash From Financing Activities 830.5M -45.8M -46.8M -356.5M
Effect Of Exchange Rate -1.1M 700k -1.1M 3.8M
Change In Cash 275.2M 197.2M -59.6M -48.1M