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).

## 4DS 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 4DS Memory Limited (4DS), the free cash flow value is -3.78M.

All amounts in AUD

Operating Cash
-3.77M
Capital Expenditure
-10.86k
Free Cash Flow
-3.78M

4DS Memory 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).

## 4DS Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for 4DS Memory Limited (ASX:4DS).

30 Jun 202030 Jun 201930 Jun 201830 Jun 2017
Net Income-5.47M-5.78M-5.2M-2.57M
Depreciation176.47k123.25k50.36k12.99k
Change To Netincome646.61k1.2M1.74M22.52k
Change To Account Receivables553107-480253
Change To Liabilities881.29k-47.08k56.46k36.11k
Change To Operating Activities-2.55k-2.13k8.1k5.02k
Total Cash From Operating Activities-3.77M-4.51M-3.35M-2.49M
Capital Expenditures-10.86k-96.03k-373.53k-25.93k
Total Cashflows From Investing Activities-10.86k-96.03k-367.11k86.7k
Net Borrowings141.89k141.89k141.89k-4.87k
Other Cashflows From Financing Activities-273.43k-237.43k-242.34k-233.89k
Total Cash From Financing Activities4.1M3.79M4.08M3.76M
Effect Of Exchange Rate20.22k53.71k-13.96k-18.38k
Change In Cash342.17k-764.62k356.13k1.33M
Issuance Of Stock4.23M4.03M4.33M4M