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).

## AC8 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 AusCann Group Holdings Ltd (AC8), the free cash flow value is -15.89M.

All amounts in AUD

Operating Cash
-10.55M
Capital Expenditure
-5.34M
Free Cash Flow
-15.89M

AusCann Group Holdings Ltd 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).

## AC8 Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for AusCann Group Holdings Ltd (ASX:AC8).

30 Jun 202030 Jun 201930 Jun 201830 Jun 2017
Net Income-7.08M-7.65M-7.67M-14.14M
Depreciation94.78k56.24k30.77k121
Change To Netincome673.79k2.07M2.75M11.34M
Change To Account Receivables-53.8k-16.54k26.89k-99.86k
Change To Liabilities-631.86k575.7k139.95k157.6k
Change To Inventory-3.61M-3.61M-3.61M-3.61M
Change To Operating Activities50.37k-6.9k-69.15k-210.48k
Total Cash From Operating Activities-10.55M-4.97M-4.79M-2.95M
Capital Expenditures-5.34M-7.14M-140.34k-140.34k
Other Cashflows From Investing Activities-219.91k-639.88k-766.29k-766.29k
Total Cashflows From Investing Activities-5.56M-7.78M-1.37M-944.58k
Net Borrowings-42.35k-42.35k-42.35k-42.35k
Total Cash From Financing Activities-31.85k35.18M3.95M16.01M
Change In Cash-16.14M22.43M-2.2M12.12M
Issuance Of Stock10.5k36.9M3.95M17M