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