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).

ADA 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 Adacel Technologies Limited (ADA), the free cash flow value is 5.75M.

All amounts in AUD

Operating Cash
Capital Expenditure
Free Cash Flow

Adacel Technologies 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).

ADA Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Adacel Technologies Limited (ASX:ADA).

30 Jun 202030 Jun 201930 Jun 201830 Jun 2017
Net Income3.63M-2.7M7.72M9.28M
Change To Netincome-211k170k101k15k
Change To Account Receivables875k-177k-2.26M-598k
Change To Liabilities1.11M-2.62M2.97M-2.24M
Change To Inventory-550k2.12M-2.12M-376k
Change To Operating Activities-661k2.02M1.6M-1.94M
Total Cash From Operating Activities6.11M-491k8.63M4.91M
Capital Expenditures-354k-175k-250k-179k
Total Cashflows From Investing Activities-859k-452k-527k-179k
Dividends Paid-762k-2.71M-3.36M-2.77M
Net Borrowings-1.04M-1.04M-1.04M-1.04M
Other Cashflows From Financing Activities-625k-909k-707k-740k
Total Cash From Financing Activities-2.43M-9.46M-12.19M-3.54M
Effect Of Exchange Rate-158k385k246k-613k
Change In Cash2.67M-10.01M-3.83M585k