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).

## 8CO 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 8common Limited (8CO), the free cash flow value is -211085.

All amounts in AUD

Operating Cash
-200.94k
Capital Expenditure
-10.15k
Free Cash Flow
-211085

8common 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).

## 8CO Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for 8common Limited (ASX:8CO).

30 Jun 202030 Jun 201930 Jun 201830 Jun 2017
Net Income-804.09k-1.36M-982.98k-1.32M
Depreciation7.79k450.28k375.82k363.74k
Change To Netincome697.06k263.63k56.66k686.26k
Change To Account Receivables91.32k1.65k-72.23k167.5k
Change To Liabilities-476.95k-46.96k-200.61k97.57k
Change To Operating Activities-1.55k73.76k-38.47k-120.87k
Total Cash From Operating Activities-200.94k-130.5k-503.81k14.5k
Capital Expenditures-10.15k-10.15k-10k-11.07k
Total Cashflows From Investing Activities-10.15k30.4k200.81k-47.71k
Total Cash From Financing Activities1.02M599.89k469.61k78.85k
Change In Cash809.11k499.79k151.03k51k
Issuance Of Stock1.02M599.89k1.82M1.82M