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 9.61M.

All amounts in SGD

Operating Cash
10.19M
Capital Expenditure
-587.43k
Free Cash Flow
9.61M

8I Holdings 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).

8IH Cash Flow Statement History

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

31 Mar 202131 Mar 202031 Mar 201931 Mar 2018
Net Income7.95M-3.68M-10.2M-4.25M
Depreciation1.66M1.74M655.66k622.16k
Change To Netincome-3.08M2.61M6.72M-1.72M
Change To Account Receivables-145.38k-69.07k-569.22k-575.95k
Change To Liabilities7.87M2.09M-170.2k-498.39k
Total Cash From Operating Activities10.19M5.69M-6.3M-7.01M
Capital Expenditures-587.43k-198.63k-377.64k-613.28k
Investments-8.13k315.05k-1.04M-88.96k
Total Cashflows From Investing Activities-555.13k2.79M4.22M2.92M
Net Borrowings-1.22M-1.39M48.56k48.56k
Other Cashflows From Financing Activities604.69k-1.26M225.19k6.55M
Total Cash From Financing Activities-1.1M-2.69M342.29k5.65M
Effect Of Exchange Rate-164.12k271.04k175.46k175.46k
Change In Cash8.38M6.06M-1.56M1.56M
Repurchase Of Stock-483.39k-35.81k-136.8k-136.8k