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 -11.30M.

All amounts in AUD

Operating Cash
-11.27M
Capital Expenditure
-29k
Free Cash Flow
-11.30M

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 202130 Jun 202030 Jun 201930 Jun 2018
Net Income-15.04M-11.4M-11.79M-9.34M
Depreciation142k249k263k212k
Change To Netincome3.22M702k-328k-646k
Change To Account Receivables-1k-178k952k-582k
Change To Liabilities-268k1.86M-1.16M247k
Change To Inventory150k-720k114k185k
Total Cash From Operating Activities-11.27M-7.32M-11.81M-9.82M
Capital Expenditures-29k-138k-325k-325k
Total Cashflows From Investing Activities-29k-138k111k-902k
Net Borrowings3M2.93M2.93M2.93M
Other Cashflows From Financing Activities-968k-105k-105k-105k
Total Cash From Financing Activities21.9M11.34M11.34M71k
Effect Of Exchange Rate-8k-65k341k-6k
Change In Cash10.59M3.82M-11.36M-10.66M
Issuance Of Stock19.87M8.52M8.52M71k