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