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 -6.29M.

All amounts in AUD

Operating Cash
-5.77M
Capital Expenditure
-519k
Free Cash Flow
-6.29M

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 202030 Jun 201930 Jun 201830 Jun 2017
Net Income-12.74M-3.88M291.48k-1.33M
Depreciation1.08M949.02k490.13k629.76k
Change To Netincome1.12M1.46M1.46M1.46M
Change To Account Receivables-1.33M-1.06M-470.62k132.51k
Change To Liabilities908.83k825.14k-2.41M2.86M
Change To Operating Activities3.45M698.52k127.66k398.26k
Total Cash From Operating Activities-5.77M-1.96M952.06k2.83M
Capital Expenditures-519k-103.82k-798.45k-746.07k
Total Cashflows From Investing Activities-3.55M-2.26M-1.81M-1.75M
Net Borrowings11.59M-702.8k-69.18k230.02k
Total Cash From Financing Activities11.59M-702.8k-69.18k230.02k
Effect Of Exchange Rate59.22k2.58k16.6k-2.71k
Change In Cash2.32M-4.92M-906.53k1.31M