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).

8IH 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 8I Holdings Limited (8IH), the free cash flow value is -3.15M.

All amounts in SGD

Operating Cash
-700.41k
Capital Expenditure
-2.44M
Free Cash Flow
-3.15M

8I Holdings 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).

8IH Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for 8I Holdings Limited (ASX:8IH).

31 Mar 202231 Mar 202131 Mar 202031 Mar 2019
Net Income-4.16M7.95M-3.68M-10.2M
Depreciation1.86M1.66M1.74M655.66k
Change To Netincome6.59M-3.08M2.61M6.72M
Change To Account Receivables-1.41M-145.38k-69.07k-569.22k
Change To Liabilities2.78M7.87M2.09M-170.2k
Total Cash From Operating Activities-700.41k10.19M5.69M-6.3M
Capital Expenditures-2.44M-587.43k-198.63k-377.64k
Investments-34.19k-8.13k315.05k-1.04M
Total Cashflows From Investing Activities-3.73M-555.13k2.79M4.22M
Net Borrowings-231.15k-1.22M-1.39M48.56k
Other Cashflows From Financing Activities4.55M604.69k-1.26M225.19k
Total Cash From Financing Activities3.96M-1.1M-2.69M342.29k
Effect Of Exchange Rate492-164.12k271.04k175.46k
Change In Cash-471.64k8.38M6.06M-1.56M
Repurchase Of Stock-450.73k-483.39k-35.81k-136.8k
Issuance Of Stock90k90k90k205.34k