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).

5GN 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 5G Networks Limited (5GN), the free cash flow value is 4.20M.

All amounts in AUD

Operating Cash
7.51M
Capital Expenditure
-3.31M
Free Cash Flow
4.20M

5G Networks Limited has a positive 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).

5GN Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for 5G Networks Limited (ASX:5GN).

30 Jun 202030 Jun 201930 Jun 201830 Jun 2017
Net Income-1.54M-4.14M-325k-103.03k
Depreciation4.97M3.31M241k153
Change To Netincome1.45M1.98M193k3k
Change To Account Receivables1.04M-877k-211k-14.94k
Change To Liabilities922k287k-431k10.65k
Change To Operating Activities845k383k-116k-116k
Total Cash From Operating Activities7.51M941k-672k-104.16k
Capital Expenditures-3.31M-1.2M-295k-24.03k
Other Cashflows From Investing Activities-397k-1M-1M-1M
Total Cashflows From Investing Activities-7.79M-4.77M-3.34M-24.03k
Dividends Paid-580k-580k-580k-580k
Net Borrowings-3.13M-1.77M437k437k
Other Cashflows From Financing Activities-974k-622k-873k-873k
Total Cash From Financing Activities16.73M6.13M7.13M367k
Change In Cash16.46M2.3M3.12M238.8k
Issuance Of Stock21.41M8.52M7.57M367k