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).

## ADS 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 Adslot Limited (ADS), the free cash flow value is -3.39M.

All amounts in AUD

Operating Cash
-3.38M
Capital Expenditure
-6.1k
Free Cash Flow
-3.39M

Adslot 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).

## ADS Cash Flow Statement History

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

30 Jun 202030 Jun 201930 Jun 201830 Jun 2017
Net Income-16.62M-7.04M-11.65M-8.63M
Depreciation851.42k1.8M3.52M3.43M
Change To Netincome12.93M-1.17M1.17M692.68k
Change To Account Receivables-151.81k-952.73k-786.3k-329.63k
Change To Liabilities-3.21M3.69M551.74k-540.11k
Total Cash From Operating Activities-3.38M-1.11M-5.27M-4.12M
Capital Expenditures-6.1k-33.11k-134.74k-177.95k
Other Cashflows From Investing Activities277.76k2.27M1.92M1.58M
Total Cashflows From Investing Activities-4.29M-2.79M-4.28M-3.12M
Net Borrowings167.31k167.31k167.31k167.31k
Other Cashflows From Financing Activities-1.01M-392.95k-392.95k-1.22M
Total Cash From Financing Activities5.56M7.11M7.11M16.84M
Effect Of Exchange Rate110.86k182.38k10.12k-22.73k
Change In Cash-2.01M3.39M-9.54M9.57M
Issuance Of Stock6.4M7.5M7.5M18.05M