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 5.86M.

All amounts in AUD

Operating Cash
Capital Expenditure
Free Cash Flow

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 202030 Jun 201930 Jun 201830 Jun 2017
Net Income4.17M3.17M3.28M4.9M
Change To Netincome-208k142k295k-870k
Change To Account Receivables3.4M726k-108k-168k
Change To Liabilities-2.3M-2.44M3.12M-1.65M
Change To Inventory-5.26M546k302k-1.44M
Change To Operating Activities500k-96k82k371k
Total Cash From Operating Activities7.51M4.88M9.22M1.67M
Capital Expenditures-1.65M-2.13M-4.54M-1.56M
Total Cashflows From Investing Activities-15M-3.07M-9.54M-9.99M
Dividends Paid-1.18M-1.02M-988k-809k
Net Borrowings9.17M-484k1.78M7.98M
Other Cashflows From Financing Activities142k127k127k127k
Total Cash From Financing Activities8.13M-1.38M788k7.17M
Change In Cash636k437k468k-1.15M