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 10.34M.

All amounts in AUD

Operating Cash
16.72M
Capital Expenditure
-6.38M
Free Cash Flow
10.34M

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 202030 Jun 201930 Jun 201830 Jun 2017
Net Income-43.43M10.89M31.94M37.93M
Depreciation32.77M27.68M22.87M22.27M
Change To Netincome13M7.69M1.4M6.73M
Change To Account Receivables26.83M46.61M-19.05M-21.1M
Change To Liabilities16.31M-21.73M3.5M4.49M
Change To Inventory-33.23M-10.2M-24.44M-43.11M
Change To Operating Activities-2.74M-5.47M-2.11M-5.53M
Total Cash From Operating Activities16.72M61.21M19.26M5.24M
Capital Expenditures-6.38M-6.52M-8.33M-5.35M
Other Cashflows From Investing Activities115k11k3.9M3.66M
Total Cashflows From Investing Activities-38.48M-9.82M-5.34M69k
Net Borrowings-12.53M-21.61M3.17M18k
Other Cashflows From Financing Activities-2.03M-1.89M-892k-892k
Total Cash From Financing Activities-14.56M-27.13M98k-9.88M
Effect Of Exchange Rate1.21M1.74M554k-769k
Change In Cash-35.12M25.99M14.57M-5.34M