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).

ABV 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 Advanced Braking Technology Limited (ABV), the free cash flow value is 344000.

All amounts in AUD

Operating Cash
398k
Capital Expenditure
-54k
Free Cash Flow
344000

Advanced Braking Technology Limited has a positive 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).

ABV Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Advanced Braking Technology Limited (ASX:ABV).

30 Jun 2022 30 Jun 2021 30 Jun 2020 30 Jun 2019
Net Income 644k 620k 171k -1.71M
Depreciation 267k 243k 264k 211k
Change To Netincome -67k 109k 120k 120k
Change To Account Receivables -610k -150k 20k 49k
Change To Liabilities 706k 198k -123k 101k
Change To Inventory -471k 229k -165k -307k
Change To Operating Activities -71k -38k -51k 196k
Total Cash From Operating Activities 398k 1.21M 242k -1.45M
Capital Expenditures -54k -274k -26k -133k
Total Cashflows From Investing Activities -28k -274k 53k -133k
Net Borrowings -22k -18k -427k 288k
Other Cashflows From Financing Activities -20k -25k -68k -98k
Total Cash From Financing Activities -42k -43k -495k 1.67M
Change In Cash 328k 895k -200k 89k