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).

AGN 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 Argenica Therapeutics Limited (AGN), the free cash flow value is -1.05M.

All amounts in AUD

Operating Cash
Capital Expenditure
Free Cash Flow

Argenica Therapeutics 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).

AGN Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Argenica Therapeutics Limited (ASX:AGN).

30 Jun 202130 Jun 2020
Net Income-1.03M-657.26k
Change To Netincome268.22k268.22k
Change To Account Receivables-92.6k-59.45k
Change To Liabilities-199.72k615.88k
Change To Operating Activities7.19k7.19k
Total Cash From Operating Activities-1.05M-100.83k
Other Cashflows From Financing Activities120120
Total Cash From Financing Activities7.85M687.09k
Change In Cash6.8M586.26k
Issuance Of Stock7.85M687.09k