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).

## AHX 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 Apiam Animal Health Limited (AHX), the free cash flow value is 8.95M.

All amounts in AUD

Operating Cash
13.69M
Capital Expenditure
-4.74M
Free Cash Flow
8.95M

Apiam Animal Health 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).

## AHX Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Apiam Animal Health Limited (ASX:AHX).

30 Jun 202130 Jun 202030 Jun 201930 Jun 2018
Net Income5.08M4.09M3.17M3.28M
Depreciation5.95M6.06M3.19M2.43M
Change To Netincome533k-207k142k295k
Change To Account Receivables-1.5M3.4M726k-108k
Change To Liabilities630k-2.56M-2.44M3.12M
Change To Inventory1.89M-5.26M546k302k
Change To Operating Activities361k747k-96k82k
Total Cash From Operating Activities13.69M7.51M4.88M9.22M
Capital Expenditures-4.74M-1.65M-2.13M-4.54M
Total Cashflows From Investing Activities-16.62M-15M-3.07M-9.54M
Dividends Paid-1.94M-1.18M-1.02M-988k
Net Borrowings-1.25M9.17M-484k1.78M
Other Cashflows From Financing Activities-235k142k127k127k
Total Cash From Financing Activities2.57M8.13M-1.38M788k
Change In Cash-359k636k437k468k
Issuance Of Stock6M6M6M6M