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).

ADR 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 Adherium Limited (ADR), the free cash flow value is -9.89M.

All amounts in AUD

Operating Cash
-9.61M
Capital Expenditure
-279k
Free Cash Flow
-9.89M

Adherium 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).

ADR Cash Flow Statement History

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

30 Jun 202230 Jun 202130 Jun 202030 Jun 2019
Net Income-11.22M-15.04M-11.4M-11.79M
Depreciation181k142k249k263k
Change To Netincome1.53M3.22M702k-328k
Change To Account Receivables-5k-1k-178k952k
Change To Liabilities52k-268k1.86M-1.16M
Change To Inventory-144k150k-720k114k
Total Cash From Operating Activities-9.61M-11.27M-7.32M-11.81M
Capital Expenditures-279k-29k-138k-325k
Total Cashflows From Investing Activities-279k-29k-138k111k
Effect Of Exchange Rate-6k-8k-65k341k
Change In Cash-9.89M10.59M3.82M-11.36M