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