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).

## ADO 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 AnteoTech Limited (ADO), the free cash flow value is -2.77M.

All amounts in AUD

Operating Cash
-2.5M
Capital Expenditure
-270.45k
Free Cash Flow
-2.77M

AnteoTech 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).

## ADO Cash Flow Statement History

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

30 Jun 202030 Jun 201930 Jun 201830 Jun 2017
Net Income-3.13M-3.3M-3.64M-10.53M
Depreciation422.99k187.23k313.25k201.81k
Change To Netincome149.23k174.15k104.61k12.03M
Change To Account Receivables1.98k719.29k-646.15k-1.36M
Change To Liabilities-53.51k-46.73k-573.04k-211.17k
Change To Operating Activities103.98k-80.63k-160.28k454.6k
Total Cash From Operating Activities-2.5M-2.34M-4.51M-340.67k
Capital Expenditures-270.45k-78.23k-218.89k-898.15k
Total Cashflows From Investing Activities-270.45k-78.23k21.27M-898.15k
Net Borrowings-240.69k-240.69k-15.85M-995.12k
Other Cashflows From Financing Activities-205.97k-282.26k-170k-170k
Total Cash From Financing Activities1.71M3.37M-16.02M-109.61k
Change In Cash-1.06M947.43k755.02k-2.81M
Issuance Of Stock2.16M3.65M3.65M885.51k