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