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).

ACR 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 Acrux Limited (ACR), the free cash flow value is -8.79M.

All amounts in AUD

Operating Cash
-8.53M
Capital Expenditure
-258k
Free Cash Flow
-8.79M

Acrux 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).

ACR Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Acrux Limited (ASX:ACR).

30 Jun 202030 Jun 201930 Jun 201830 Jun 2017
Net Income-9.47M-8.32M-14.18M-243k
Depreciation601k319k229k175k
Change To Netincome385k284k5.8M11.09M
Change To Account Receivables-246k-2.04M5.27M-822k
Change To Liabilities92k-96k-1.64M-3.9M
Change To Operating Activities-1k-238k40k56k
Total Cash From Operating Activities-8.53M-9.94M-5.28M5.38M
Capital Expenditures-258k-380k-296k-629k
Total Cashflows From Investing Activities-254k-380k-296k-629k
Net Borrowings-159k-159k-159k-159k
Total Cash From Financing Activities-159k-159k-159k-159k
Change In Cash-8.95M-10.32M-5.5M4.61M