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).

1AD 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 AdAlta Limited (1AD), the free cash flow value is -5.89M.

All amounts in AUD

Operating Cash
-5.89M
Capital Expenditure
-2.38k
Free Cash Flow
-5.89M

AdAlta 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).

1AD Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for AdAlta Limited (ASX:1AD).

30 Jun 202030 Jun 201930 Jun 201830 Jun 2017
Net Income-6.01M-5.92M-3.85M-2.83M
Depreciation41.83k32.5k3.14k5.43k
Change To Netincome706k100.7k168.96k-64.63k
Change To Account Receivables249.05k-1.48M-267.63k-965.43k
Change To Liabilities-910.25k1.45M-766107.12k
Change To Operating Activities30.07k-2.37k22.57k23.2k
Total Cash From Operating Activities-5.89M-5.82M-3.93M-3.73M
Capital Expenditures-2.38k-170.6k-3.14k-6.75k
Total Cashflows From Investing Activities-2.38k-170.6k-3.14k-8.35k
Net Borrowings2.08M2.08M2.08M2.08M
Other Cashflows From Financing Activities-153.19k-716.09k-716.09k-584.76k
Total Cash From Financing Activities3.7M9.24M13.19k9.47M
Change In Cash-2.19M3.25M-3.92M5.74M
Issuance Of Stock1.78M9.95M13.19k10.06M