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