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