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).

## AFP 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 AFT Pharmaceuticals Limited (AFP), the free cash flow value is 13.82M.

All amounts in NZD

Operating Cash
14.15M
Capital Expenditure
-329k
Free Cash Flow
13.82M

AFT Pharmaceuticals Limited 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).

## AFP Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for AFT Pharmaceuticals Limited (ASX:AFP).

31 Mar 2022 31 Mar 2021 31 Mar 2020 31 Mar 2019
Net Income 19.85M 7.78M 12.69M -2.43M
Depreciation 913k 975k 956k 243k
Change To Netincome 732k 3.5M 82k 7.85M
Change To Account Receivables -4.96M -4.56M -7.3M -2.05M
Change To Liabilities -2.66M 3.84M 5.88M -1.88M
Change To Inventory 154k -10.92M 2.42M -746k
Total Cash From Operating Activities 14.15M 750k 14.88M 1.07M
Capital Expenditures -329k -93k -92k -140k
Total Cashflows From Investing Activities -5.58M -6.23M -6.56M -4.88M
Net Borrowings -2.02M -5.49M -2.65M 7.42M
Other Cashflows From Financing Activities -2.19M -4.19M -5.9M -3.56M
Total Cash From Financing Activities -3.91M 2.52M -9.12M 3.72M
Effect Of Exchange Rate 78k 49k 5k 240k
Change In Cash 4.73M -2.91M -797k 146k
Issuance Of Stock 295k 12.4M 3k 3k