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 657000.

All amounts in NZD

Operating Cash
750k
Capital Expenditure
-93k
Free Cash Flow
657000

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 202131 Mar 202031 Mar 201931 Mar 2018
Net Income7.78M12.69M-2.43M-12.72M
Depreciation975k956k243k241k
Change To Netincome3.5M82k7.85M3.34M
Change To Account Receivables-4.56M-7.3M-2.05M-1.08M
Change To Liabilities3.84M5.88M-1.88M3.17M
Change To Inventory-10.92M2.42M-746k-2.21M
Total Cash From Operating Activities750k14.88M1.07M-9.17M
Capital Expenditures-93k-92k-140k-70k
Total Cashflows From Investing Activities-6.23M-6.56M-4.88M-5.86M
Dividends Paid-188k-566k-134k-412k
Net Borrowings-5.49M-2.65M7.42M7.13M
Other Cashflows From Financing Activities-4.19M-5.9M-3.56M-1.93M
Total Cash From Financing Activities2.52M-9.12M3.72M5.86M
Effect Of Exchange Rate49k5k240k24k
Change In Cash-2.91M-797k146k-9.13M
Issuance Of Stock12.4M3k3k1.06M