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