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).

## A3D 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 Aurora Labs Limited (A3D), the free cash flow value is -6.66M.

All amounts in AUD

Operating Cash
-6.29M
Capital Expenditure
-368.26k
Free Cash Flow
-6.66M

Aurora Labs 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).

## A3D Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Aurora Labs Limited (ASX:A3D).

30 Jun 202030 Jun 201930 Jun 201830 Jun 2017
Net Income-8.16M-7.64M-5.53M-3.4M
Depreciation387.47k176.12k158.9k28.42k
Change To Netincome997.55k297.45k322.21k1.08M
Change To Account Receivables565.08k-748.12k-484.45k-1.34M
Change To Liabilities-246.03k130.92k-77.72k272.72k
Change To Inventory190.54k7.79k-147.03k-405.5k
Change To Operating Activities-28.11k15.84k60.34k107.73k
Total Cash From Operating Activities-6.29M-7.76M-5.7M-3.65M
Capital Expenditures-368.26k-163.91k-283.63k-345.62k
Total Cashflows From Investing Activities-594.61k-421.23k-583.99k-507.39k
Net Borrowings-889.3k1.35M1.35M1.35M
Total Cash From Financing Activities4.61M8M4.83M7.06M
Effect Of Exchange Rate-11.02k-2.32k-1.84k179
Change In Cash-2.28M-185.79k-1.46M2.9M
Issuance Of Stock5.5M6.65M4.83M7.06M