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).

## ADV 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 Ardiden Limited (ADV), the free cash flow value is -5.01M.

All amounts in AUD

Operating Cash
-854.73k
Capital Expenditure
-4.16M
Free Cash Flow
-5.01M

Ardiden 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).

## ADV Cash Flow Statement History

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

30 Jun 202130 Jun 202030 Jun 201930 Jun 2018
Net Income-1.23M-978.69k-1.19M-2.76M
Depreciation29.72k12.62k46.91k1.61M
Change To Netincome250.26k140.45k167.67k140.79k
Change To Account Receivables-18.67k35.86k162.1k-16.69k
Change To Liabilities105.35k63.26k-339.81k-8.27k
Change To Operating Activities12.82k38.8k-28.75k18.76k
Total Cash From Operating Activities-854.73k-687.7k-1.18M-1.02M
Capital Expenditures-4.16M-981.39k-2.52M-4.23M
Investments-72.38k-72.38k-72.38k-72.38k
Total Cashflows From Investing Activities-4.23M-981.39k-2.52M-4.23M
Other Cashflows From Financing Activities-296.53k-20k-20k-295.04k
Total Cash From Financing Activities4.83M-20k-20k10.67M
Effect Of Exchange Rate-10k-28.96k4.3k4.3k
Change In Cash-265.08k-1.72M-3.7M5.43M
Issuance Of Stock5.13M5.13M5.13M10.97M