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).

## 99L 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 99 Loyalty Limited (99L), the free cash flow value is -59.78M.

All amounts in CNY

Operating Cash
-58.43M
Capital Expenditure
-1.35M
Free Cash Flow
-59.78M

99 Loyalty 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).

## 99L Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for 99 Loyalty Limited (ASX:99L).

31 Dec 202131 Dec 202031 Dec 201931 Dec 2018
Net Income-74.23M31.56M13.12M-9.17M
Depreciation10.48M11.27M10.56M5.4M
Change To Netincome62.79M29.82M8.6M11.23M
Change To Account Receivables54.19M15.28M-62.19M-29.41M
Change To Liabilities-106.86M-67.78M64.29M44.41M
Change To Inventory-5.22M171.7k773.71k5.23M
Change To Operating Activities-19.21k-18.32k-118.8k8.89k
Total Cash From Operating Activities-58.43M21.66M36.17M28.71M
Capital Expenditures-1.35M-22.55k-3.01M-417.06k
Total Cashflows From Investing Activities-1.47M49.83M28.79M21.72M
Net Borrowings-15.09M-36.38M-13.25M-24.05M
Other Cashflows From Financing Activities-14.79M-15.64M-15.99M-11.81M
Total Cash From Financing Activities-29.88M-52.02M-29.24M-35.86M
Effect Of Exchange Rate26.87k-83.75k421.21k-119.44k
Change In Cash-89.75M19.38M36.14M14.45M