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).

## EBO 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 EBOS Group Limited (EBO), the free cash flow value is 166.96M.

All amounts in AUD

Operating Cash
248.74M
Capital Expenditure
-81.77M
Free Cash Flow
166.96M

EBOS Group 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).

## EBO Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for EBOS Group Limited (NZX:EBO).

30 Jun 2022 30 Jun 2021 30 Jun 2020 30 Jun 2019
Net Income 202.6M 185.3M 162.52M 137.7M
Depreciation 81.87M 72.64M 73.15M 32.06M
Change To Netincome -20.04M -18.2M -4.86M -2.59M
Change To Account Receivables -218.23M -133.91M -124.79M 19.07M
Change To Liabilities 414.97M 209.62M 115.64M 118.65M
Change To Inventory -335.29M -47.06M -14.18M -188.44M
Change To Operating Activities 117.91M 9.94M 19.19M 665k
Total Cash From Operating Activities 248.74M 298.31M 229.19M 118.54M
Capital Expenditures -81.77M -77.15M -24.23M -32.97M
Investments -7.9M -497k -3.55M -110k
Total Cashflows From Investing Activities -1.4B -113.76M -73.33M -120.05M
Dividends Paid -154.11M -124.99M -111.83M -99.93M
Net Borrowings 864.52M -167.12M 7.44M -51.88M
Other Cashflows From Financing Activities -10.88M -144k -68k -3.04M
Total Cash From Financing Activities 1.5B -259.98M -74.72M 16.36M
Effect Of Exchange Rate -5.8M -400k -2.98M 1.9M
Change In Cash 348.36M -75.83M 78.16M 16.75M
Issuance Of Stock 802.1M 32.27M 29.74M 171.21M