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).

AIM 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 Ai-Media Technologies Limited (AIM), the free cash flow value is -18.70M.

All amounts in AUD

Operating Cash
-17.95M
Capital Expenditure
-741.54k
Free Cash Flow
-18.70M

Ai-Media Technologies 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).

AIM Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Ai-Media Technologies Limited (ASX:AIM).

30 Jun 202130 Jun 202030 Jun 201930 Jun 2018
Net Income-10.69M-12.74M-3.88M291.48k
Depreciation1.23M1.08M949.02k490.13k
Change To Netincome2.84M1.12M1.46M1.46M
Change To Account Receivables-4.27M-1.33M-1.06M-470.62k
Change To Liabilities-7.86M908.83k825.14k-2.41M
Change To Inventory22.94k22.94k22.94k22.94k
Change To Operating Activities-1.3M3.45M698.52k127.66k
Total Cash From Operating Activities-17.95M-5.77M-1.96M952.06k
Capital Expenditures-741.54k-519k-103.82k-798.45k
Other Cashflows From Investing Activities-2.71M-2.71M-4.72k-4.72k
Total Cashflows From Investing Activities-28.8M-3.55M-2.26M-1.81M
Net Borrowings-4.37M11.59M-702.8k-69.18k
Other Cashflows From Financing Activities-4.31M-4.31M-4.31M-4.31M
Total Cash From Financing Activities61.52M11.59M-702.8k-69.18k
Effect Of Exchange Rate105.34k59.22k2.58k16.6k
Change In Cash14.87M2.32M-4.92M-906.53k
Issuance Of Stock70.2M70.2M70.2M70.2M