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).

## 1ST 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 1st Group Limited (1ST), the free cash flow value is -3.52M.

All amounts in AUD

Operating Cash
-3.49M
Capital Expenditure
-24.55k
Free Cash Flow
-3.52M

1st Group 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).

## 1ST Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for 1st Group Limited (ASX:1ST).

30 Jun 202130 Jun 202030 Jun 201930 Jun 2018
Net Income-6.47M-5.01M-4.3M-4.64M
Depreciation172.48k159.06k167.32k174.34k
Change To Netincome3.26M250.99k-96.64k143.12k
Change To Account Receivables-104.82k-117.74k143.41k-226.8k
Change To Liabilities-369.49k564.84k457.26k-290.62k
Change To Operating Activities13.99k-194.93k-202.68k39.95k
Total Cash From Operating Activities-3.49M-4.34M-3.58M-3.65M
Capital Expenditures-24.55k-83.47k-8.57k-9.41k
Total Cashflows From Investing Activities-24.55k-83.47k-8.57k-9.41k
Net Borrowings1.7M-350k900k1M
Total Cash From Financing Activities1.7M3.71M6.09M1M
Change In Cash-1.82M-718.76k2.5M-2.66M