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 21.64M.

All amounts in CNY

Operating Cash
21.66M
Capital Expenditure
-22.55k
Free Cash Flow
21.64M

99 Loyalty 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).

## 99L Cash Flow Statement History

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

31 Dec 202031 Dec 201931 Dec 201831 Dec 2017
Net Income31.56M13.12M-9.17M-17.04M
Depreciation11.27M10.56M5.4M5.67M
Change To Netincome29.82M8.6M11.23M-28.85M
Change To Account Receivables15.28M-62.19M-29.41M-142.18M
Change To Liabilities-67.78M64.29M44.41M107.44M
Change To Inventory171.7k773.71k5.23M4.29M
Change To Operating Activities-18.32k-118.8k8.89k4.96k
Total Cash From Operating Activities21.66M36.17M28.71M-69.57M
Capital Expenditures-22.55k-3.01M-417.06k-1.55M
Other Cashflows From Investing Activities50M33.6M22.8M-46.4M
Total Cashflows From Investing Activities49.83M28.79M21.72M-66.37M
Net Borrowings-36.38M-13.25M-24.05M142.91M
Other Cashflows From Financing Activities-15.64M-15.99M-11.81M-7.9M
Total Cash From Financing Activities-52.02M-29.24M-35.86M135.02M
Effect Of Exchange Rate-83.75k421.21k-119.44k-554.93k
Change In Cash19.38M36.14M14.45M-1.48M