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).

AEI 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 Aeris Environmental Ltd (AEI), the free cash flow value is -2.08M.

All amounts in AUD

Operating Cash
-2.05M
Capital Expenditure
-24.29k
Free Cash Flow
-2.08M

Aeris Environmental Ltd 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).

AEI Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Aeris Environmental Ltd (ASX:AEI).

30 Jun 202030 Jun 201930 Jun 201830 Jun 2017
Net Income1.98M-3.63M-3.59M-3.75M
Depreciation134.38k67.17k67.19k58.29k
Change To Netincome301.01k484.48k665.54k813.03k
Change To Account Receivables-2.2M-1.77M-441.09k-1.28M
Change To Liabilities385.68k918.37k545.48k175.06k
Change To Inventory-2.72M-451.88k-61.47k-85.79k
Change To Operating Activities63.77k-27.39k276.23k9.7k
Total Cash From Operating Activities-2.05M-4.41M-2.54M-4.06M
Capital Expenditures-24.29k-41.49k-26.33k-65.08k
Total Cashflows From Investing Activities-24.29k-41.49k-26.33k-65.08k
Other Cashflows From Financing Activities-472.6k-472.6k-472.6k-472.6k
Total Cash From Financing Activities11.57M7.77M1.2M196.75k
Effect Of Exchange Rate-12.69k-3.25k2.33k30.69k
Change In Cash9.48M3.31M-1.36M-3.9M
Issuance Of Stock12.04M7.47M7.47M196.75k