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).

AE1 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 Aerison Group Ltd (AE1), the free cash flow value is 1.14M.

All amounts in AUD

Operating Cash
Capital Expenditure
Free Cash Flow

Aerison Group Ltd has a positive 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).

AE1 Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Aerison Group Ltd (ASX:AE1).

31 Dec 202031 Dec 2019
Net Income5.05M4.12M
Change To Netincome161.12k70.98k
Change To Account Receivables-5.57M-15.01M
Change To Liabilities-1.37M9.97M
Change To Operating Activities518.55k374.61k
Total Cash From Operating Activities1.51M1.36M
Capital Expenditures-372.96k-587.12k
Total Cashflows From Investing Activities-372.96k-524.43k
Dividends Paid-576k-576k
Net Borrowings-2.32M7.02M
Total Cash From Financing Activities-2.89M6.42M
Change In Cash-1.76M7.25M