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).

ACU 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 Acumentis Group Limited (ACU), the free cash flow value is -919000.

All amounts in AUD

Operating Cash
-595k
Capital Expenditure
-324k
Free Cash Flow
-919000

Acumentis 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).

ACU Cash Flow Statement History

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

30 Jun 202030 Jun 201930 Jun 201830 Jun 2017
Net Income-2.56M-15.15M4.14M1.63M
Depreciation1.61M427k273k160k
Change To Netincome648k13.19M13k206k
Change To Account Receivables-862k3.89M-58k2.02M
Change To Liabilities-782k-1.34M-725k683k
Change To Operating Activities486k-772k-1.12M-105k
Total Cash From Operating Activities-595k56k1.74M4.72M
Capital Expenditures-324k-260k-346k-140k
Investments-628k-628k1.84M-2.5M
Total Cashflows From Investing Activities-1.82M-4.68M-994k-17.39M
Net Borrowings-2.58M5.19M-149k-7k
Other Cashflows From Financing Activities-634k-634k-634k-1.44M
Total Cash From Financing Activities2.43M3.66M-3.72M17.32M
Change In Cash14k-956k-2.97M4.64M
Issuance Of Stock5.64M5.64M5.64M20.11M