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).

## AGI 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 Ainsworth Game Technology Limited (AGI), the free cash flow value is 20.03M.

All amounts in AUD

Operating Cash
22.25M
Capital Expenditure
-2.22M
Free Cash Flow
20.03M

Ainsworth Game Technology 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).

## AGI Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Ainsworth Game Technology Limited (ASX:AGI).

30 Jun 202130 Jun 202030 Jun 201930 Jun 2018
Net Income-53.41M-43.43M10.89M31.94M
Depreciation24.42M32.77M27.68M22.87M
Change To Netincome60.89M13M7.69M1.4M
Change To Account Receivables-18.86M26.83M46.61M-19.05M
Change To Liabilities4.13M16.31M-21.73M3.5M
Change To Inventory7.3M-33.23M-10.2M-24.44M
Change To Operating Activities-9.08M-2.74M-5.47M-2.11M
Total Cash From Operating Activities22.25M16.72M61.21M19.26M
Capital Expenditures-2.22M-6.38M-6.52M-8.33M
Other Cashflows From Investing Activities4k115k11k3.9M
Total Cashflows From Investing Activities930k-38.48M-9.82M-5.34M
Net Borrowings-3.31M-12.53M-21.61M3.17M
Other Cashflows From Financing Activities-2.21M-2.03M-1.89M-892k
Total Cash From Financing Activities-5.52M-14.56M-27.13M98k
Effect Of Exchange Rate-1.81M1.21M1.74M554k
Change In Cash15.85M-35.12M25.99M14.57M