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 14.79M.

All amounts in NZD

Operating Cash
14.88M
Capital Expenditure
-92k
Free Cash Flow
14.79M

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 202031 Mar 201931 Mar 201831 Mar 2017
Net Income12.69M-2.43M-12.72M-18.39M
Depreciation956k243k241k242k
Change To Netincome82k7.85M3.34M1.36M
Change To Account Receivables-7.3M-2.05M-1.08M-5.27M
Change To Liabilities5.88M-1.88M3.17M1.51M
Change To Inventory2.42M-746k-2.21M1.26M
Total Cash From Operating Activities14.88M1.07M-9.17M-19.06M
Capital Expenditures-92k-140k-70k-122k
Total Cashflows From Investing Activities-6.56M-4.88M-5.86M-1.6M
Dividends Paid-566k-134k-412k-412k
Net Borrowings-2.65M7.42M7.13M7.13M
Other Cashflows From Financing Activities-5.9M-3.56M-1.93M-82k
Total Cash From Financing Activities-9.12M3.72M5.86M9.04M
Effect Of Exchange Rate5k240k24k-457k
Change In Cash-797k146k-9.13M-12.07M
Issuance Of Stock3k3k1.06M1.06M