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).

## 4DX 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 4DMedical Limited (4DX), the free cash flow value is -7.98M.

All amounts in AUD

Operating Cash
-7.65M
Capital Expenditure
-325.3k
Free Cash Flow
-7.98M

4DMedical 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).

## 4DX Cash Flow Statement History

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

30 Jun 202030 Jun 201930 Jun 201830 Jun 2017
Net Income-21.98M-6.49M-3.94M-3.97M
Depreciation584.65k103.94k164.23k126.49k
Change To Netincome10.76M368.03k25.17k799.06k
Change To Account Receivables-87.36k-465.68k108k-281.51k
Change To Liabilities1.44M535.44k-930.71k1.42M
Change To Inventory612.71k-605.96k677.89k-700.69k
Change To Operating Activities1.02M776.32k513.68k451.2k
Total Cash From Operating Activities-7.65M-5.78M-3.38M-2.16M
Capital Expenditures-325.3k-524.57k-157.57k-203.28k
Other Cashflows From Investing Activities372k253.41k523.04k184.91k
Total Cashflows From Investing Activities-786.45k-1.03M-905.71k-944.14k
Net Borrowings14.06M2M1M1M
Other Cashflows From Financing Activities-1.5M-1.5M-1.5M-1.5M
Total Cash From Financing Activities13.78M8.23M4.79M4.04M
Change In Cash5.34M1.42M509.08k934.66k
Issuance Of Stock1.22M6.23M3.79M4.04M