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