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).

3DA 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 Amaero International Ltd (3DA), the free cash flow value is -7.93M.

All amounts in AUD

Operating Cash
-4.22M
Capital Expenditure
-3.7M
Free Cash Flow
-7.93M

Amaero International Ltd 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).

3DA Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Amaero International Ltd (ASX:3DA).

30 Jun 202030 Jun 201930 Jun 201830 Jun 2017
Net Income-5.78M-988.09k-1.54M-597.75k
Depreciation517.6k517.6k159.72k146.19k
Change To Netincome1.08M1.08M-6.05k24.72k
Change To Account Receivables-28.67k-169.4k461.92k214.53k
Change To Liabilities480.35k432.5k-37.5k-197.95k
Change To Inventory-486.52k-486.52k-486.52k-486.52k
Change To Operating Activities-14.26k-900k-3.27k-2.34k
Total Cash From Operating Activities-4.22M-1.62M-967.32k-412.61k
Capital Expenditures-3.7M-3.7M-4.16k-103.69k
Other Cashflows From Investing Activities-196.93k-196.93k1.22k2.79k
Total Cashflows From Investing Activities-3.9M-1.14M-2.94k-100.9k
Net Borrowings-167.14k-167.14k800k800k
Other Cashflows From Financing Activities-1.28M-1.28M-865-14
Total Cash From Financing Activities12.05M4.8M799.13k219
Effect Of Exchange Rate-74.83k-74.83k-859.17k
Change In Cash3.85M2.04M-171.21k-504.13k
Issuance Of Stock13.5M4.8M4.8M233