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).

AFA 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 ASF Group Limited (AFA), the free cash flow value is -1.58M.

All amounts in AUD

Operating Cash
-1.56M
Capital Expenditure
-21k
Free Cash Flow
-1.58M

ASF Group 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).

AFA Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for ASF Group Limited (ASX:AFA).

30 Jun 202030 Jun 201930 Jun 201830 Jun 2017
Net Income-5.95M-2.96M-631k-19.53M
Depreciation946k678k1.78M13.65M
Change To Netincome3.21M-7.29M-10.37M-3.35M
Change To Account Receivables647k-234k-164k-554k
Change To Liabilities-410k-842k-412k-437k
Total Cash From Operating Activities-1.56M-10.66M-9.85M-10.22M
Capital Expenditures-21k-164k-18k-31k
Investments2.33M2.33M2.33M4.41M
Total Cashflows From Investing Activities2.27M-2.21M9.53M2.26M
Net Borrowings-3.14M4.21M-9.89M11M
Other Cashflows From Financing Activities1.33M-225k-2.65M-2.65M
Total Cash From Financing Activities-1.81M13.21M-12.73M22.95M
Change In Cash-1.1M344k-13.08M15.17M
Repurchase Of Stock-2k-82k-193k-98k