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).

ABX 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 ABx Group Limited (ABX), the free cash flow value is -1.84M.

All amounts in AUD

Operating Cash
-1.79M
Capital Expenditure
-52k
Free Cash Flow
-1.84M

ABx Group 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).

ABX Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for ABx Group Limited (ASX:ABX).

31 Dec 202031 Dec 201931 Dec 201831 Dec 2017
Net Income-594k-2.48M-2.37M179k
Depreciation249k249k249k1k
Change To Netincome-1.7M-406k723k-259k
Change To Account Receivables-68k-77k287k-622k
Change To Liabilities344k362k277k44k
Change To Operating Activities-22k-23k-10k-59k
Total Cash From Operating Activities-1.79M-2.62M-1.1M-716k
Capital Expenditures-52k-496k-2k-2k
Other Cashflows From Investing Activities1.11M1.59M-514k808k
Total Cashflows From Investing Activities1.06M1.09M-516k808k
Total Cash From Financing Activities721k595k1.52M1.52M
Change In Cash-8k-935k-94k92k
Issuance Of Stock721k595k1.52M1.52M