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).

## A4N 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 Alpha HPA Limited (A4N), the free cash flow value is -5.77M.

All amounts in AUD

Operating Cash
-399.31k
Capital Expenditure
-5.37M
Free Cash Flow
-5.77M

Alpha HPA 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).

## A4N Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Alpha HPA Limited (ASX:A4N).

30 Jun 202030 Jun 201930 Jun 201830 Jun 2017
Net Income-9.35M-10.05M-1.77M-2.52M
Depreciation1.15k7.5M16.95k1.97M
Change To Netincome7.87M2.13M881.01k-204.8k
Change To Account Receivables965.49k-977.78k-171.94k-1.84k
Change To Liabilities83.89k-230.25k101.89k294.77k
Change To Operating Activities30.16k-75910.69k-7.21k
Total Cash From Operating Activities-399.31k-1.64M-931.96k-467.68k
Capital Expenditures-5.37M-2.17M-2.11M-1.01M
Investments120k120k120k4.05k
Total Cashflows From Investing Activities-5.38M-2.02M-2.8M-1.2M
Other Cashflows From Financing Activities-444.74k-164.69k-161.16k797.01k
Total Cash From Financing Activities13.06M4.06M3.42M2M
Effect Of Exchange Rate13.74k-35-5551.85k
Change In Cash7.29M403.01k-306.02k331.37k
Issuance Of Stock13.5M4.23M3.58M1.2M