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 -7.46M.

All amounts in AUD

Operating Cash
-7.32M
Capital Expenditure
-138k
Free Cash Flow
-7.46M

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 202030 Jun 201930 Jun 201830 Jun 2017
Net Income-11.4M-11.79M-9.34M-12.81M
Depreciation249k263k212k234k
Change To Netincome702k-328k-646k404k
Change To Account Receivables-178k952k-582k80k
Change To Liabilities1.86M-1.16M247k778k
Change To Inventory-720k114k185k-303k
Total Cash From Operating Activities-7.32M-11.81M-9.82M-11.58M
Capital Expenditures-138k-325k-325k-362k
Total Cashflows From Investing Activities-138k111k-902k-564k
Net Borrowings2.93M2.93M2.93M2.93M
Other Cashflows From Financing Activities-105k-105k-105k-511k
Total Cash From Financing Activities11.34M11.34M71k7.56M
Effect Of Exchange Rate-65k341k-6k155k
Change In Cash3.82M-11.36M-10.66M-4.43M
Issuance Of Stock8.52M8.52M71k8.07M