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
-10.45M
Capital Expenditure
-1.79M
Free Cash Flow
-12.24M

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
Depreciation1.42M488k3k3k
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