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
Capital Expenditure
Free Cash Flow

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