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 5.49M.

All amounts in SGD

Operating Cash
5.69M
Capital Expenditure
-198.63k
Free Cash Flow
5.49M

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 202031 Mar 201931 Mar 201831 Mar 2017
Net Income-3.68M-10.2M-4.25M11.25M
Depreciation1.74M655.66k622.16k335.46k
Change To Netincome2.61M6.72M-1.72M-16.58M
Change To Account Receivables-69.07k-569.22k-575.95k214.61k
Change To Liabilities2.09M-170.2k-498.39k123.34k
Total Cash From Operating Activities5.69M-6.3M-7.01M-8.32M
Capital Expenditures-198.63k-377.64k-613.28k-545.04k
Investments315.05k-1.04M-88.96k1.4M
Total Cashflows From Investing Activities2.79M4.22M2.92M4.64M
Net Borrowings-1.39M48.56k-41.24k-59.34k
Other Cashflows From Financing Activities-1.26M225.19k6.55M-343k
Total Cash From Financing Activities-2.69M342.29k5.65M-2.49M
Effect Of Exchange Rate271.04k175.46k175.46k175.46k
Change In Cash6.06M-1.56M1.56M-6.18M
Repurchase Of Stock-35.81k-136.8k-136.8k-286.71k