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).

AD8 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 Audinate Group Limited (AD8), the free cash flow value is 6.19M.

All amounts in AUD

Operating Cash
6.74M
Capital Expenditure
-552k
Free Cash Flow
6.19M

Audinate Group Limited has a positive 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).

AD8 Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Audinate Group Limited (ASX:AD8).

30 Jun 202130 Jun 202030 Jun 201930 Jun 2018
Net Income-3.44M-4.14M662k2.54M
Depreciation801k850k436k140k
Change To Netincome1.84M1.11M657k235k
Change To Account Receivables-1.28M1.06M-1.06M211k
Change To Liabilities1.65M3.11M-70k-2.31M
Change To Inventory-210k158k-578k-458k
Change To Operating Activities1.94M-1.13M249k-197k
Total Cash From Operating Activities6.74M4.83M3.62M1.04M
Capital Expenditures-552k-914k-669k-627k
Investments-27M-27M-27M-27M
Total Cashflows From Investing Activities-35.03M-8.75M-6.45M-2.98M
Net Borrowings-635k-642k-642k-642k
Other Cashflows From Financing Activities-1.26M-299k-789k-7.14M
Total Cash From Financing Activities38.14M3.13M19.25M-3.06M
Effect Of Exchange Rate-711k-1k26k-65k
Change In Cash9.14M-783k16.44M-5.06M
Issuance Of Stock40.03M4.07M20.04M4.09M