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).

## 14D 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 1414 Degrees Limited (14D), the free cash flow value is -2.64M.

All amounts in AUD

Operating Cash
-2.61M
Capital Expenditure
-36.26k
Free Cash Flow
-2.64M

1414 Degrees 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).

## 14D Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for 1414 Degrees Limited (ASX:14D).

30 Jun 202030 Jun 201930 Jun 201830 Jun 2017
Net Income-2.85M-4.27M-5.48M-954.36k
Depreciation1.51M33.66k24.53k24.53k
Change To Netincome-1.09M100.12k2.17M386.01k
Change To Account Receivables-5.85k167.02k-143.54k118.07k
Change To Liabilities-130.18k-629.99k713.7k106.79k
Change To Operating Activities-40.17k-60.68k-406.01k100.1k
Total Cash From Operating Activities-2.61M-4.13M-3.12M-243.38k
Capital Expenditures-36.26k-29.53k-164.15k-164.15k
Other Cashflows From Investing Activities2.98M3M1.92M1.92M
Total Cashflows From Investing Activities-2.34M-3.1M-3.41M-1.06M
Net Borrowings-398.87k-398.87k-398.87k125.03k
Total Cash From Financing Activities-398.87k16.02M5.85M2.9M
Effect Of Exchange Rate15.4k3.21k3.21k3.21k
Change In Cash-5.33M8.79M-679.76k1.59M