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).

AGH 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 Althea Group Holdings Limited (AGH), the free cash flow value is -12.24M.

All amounts in AUD

Operating Cash
Capital Expenditure
Free Cash Flow

Althea Group Holdings 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).

AGH Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Althea Group Holdings Limited (ASX:AGH).

30 Jun 202130 Jun 202030 Jun 201930 Jun 2018
Net Income-15.05M-14.77M-8.68M-1.5M
Change To Netincome2.33M1.5M1.91M5.6k
Change To Account Receivables-1.29M-920k-439k-52.8k
Change To Liabilities3.15M1.78M1.01M120.8k
Change To Inventory-2.98M-1.6M-546k-68k
Change To Operating Activities1.38M-1.08M537k-108.8k
Total Cash From Operating Activities-10.45M-14.24M-6.16M-1.6M
Capital Expenditures-1.79M-9.93M-1.06M-1.06M
Total Cashflows From Investing Activities-2.4M-14.14M-1.67M-1.67M
Net Borrowings-23k-3.43M-3.43M-3.43M
Other Cashflows From Financing Activities-576k-2.8M-1.16M-1.16M
Total Cash From Financing Activities9.18M23.77M20.49M3.44M
Effect Of Exchange Rate-89k-171k-44k-44k
Change In Cash-3.75M-4.78M12.62M1.84M
Issuance Of Stock9.78M30M21.65M3.44M