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).

AHI 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 Advanced Human Imaging Limited (AHI), the free cash flow value is -2.76M.

All amounts in AUD

Operating Cash
-2.7M
Capital Expenditure
-62.37k
Free Cash Flow
-2.76M

Advanced Human Imaging 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).

AHI Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Advanced Human Imaging Limited (ASX:AHI).

30 Jun 202030 Jun 201930 Jun 201830 Jun 2017
Net Income-5.4M-4.36M-13.92M-2.19M
Depreciation73.91k27.83k22.78k13.85k
Change To Netincome2.17M1.32M12.11M157.16k
Change To Account Receivables-268.69k108.52k-106.98k16.52k
Change To Liabilities446.5k-39.66k372.33k145.17k
Change To Inventory27279.66k3.56k
Change To Operating Activities110.75k-492.94k66.09k38.76k
Total Cash From Operating Activities-2.7M-3.26M-1.29M-1.81M
Capital Expenditures-62.37k-43.56k-30.6k-18.07k
Other Cashflows From Investing Activities81.5k-150k-150k5.4k
Total Cashflows From Investing Activities-84.68k-242.2k-201.8k-700.3k
Net Borrowings909.41k900k500k500k
Other Cashflows From Financing Activities-123k-196.8k-196.8k-196.8k
Total Cash From Financing Activities2.84M3.9M500k500k
Change In Cash54.46k402.2k-988.01k-2.51M
Issuance Of Stock2.05M3.2M3.2M3.2M