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 -23.45M.

All amounts in AUD

Operating Cash
Capital Expenditure
Free Cash Flow

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 202230 Jun 202130 Jun 202030 Jun 2019
Net Income-7.36M-16.27M-9.35M-10.05M
Change To Netincome5.4M12.76M7.87M2.13M
Change To Account Receivables-2.62M-420.85k965.49k-977.78k
Change To Liabilities686.75k95.55k83.89k-230.25k
Change To Operating Activities-60.72k-25.62k30.16k-759
Total Cash From Operating Activities-3.76M-1.63M-399.31k-1.64M
Capital Expenditures-19.69M-232.72k-256.22k-464.87k
Total Cashflows From Investing Activities-31.14M-6.73M-5.38M-2.02M
Net Borrowings-98.22k-40.47k-40.47k-40.47k
Other Cashflows From Financing Activities-11.41k-2.54M-444.74k-164.69k
Total Cash From Financing Activities1.39M50.82M13.06M4.06M
Effect Of Exchange Rate-717-99.57k13.74k-35
Change In Cash-33.51M42.36M7.29M403.01k
Issuance Of Stock1.5M53.4M13.5M4.23M