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