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