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).

AIR 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 AstiVita Limited (AIR), the free cash flow value is -2.37M.

All amounts in AUD

Operating Cash
-2.36M
Capital Expenditure
-15k
Free Cash Flow
-2.37M

AstiVita 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).

AIR Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for AstiVita Limited (ASX:AIR).

30 Jun 202030 Jun 201930 Jun 201830 Jun 2017
Net Income-7.3M-583k-841k-1.03M
Depreciation101k53k43k91k
Change To Netincome4.6M-250k-250k-414k
Change To Account Receivables566k411k-178k-3k
Change To Liabilities167k129k-463k-303k
Change To Inventory-99k-362k276k675k
Change To Operating Activities-444k-248k140k-149k
Total Cash From Operating Activities-2.36M-790k-932k-1.04M
Capital Expenditures-15k-2k-13k-15k
Total Cashflows From Investing Activities-114k-31k-13k-450k
Net Borrowings2.47M699k940k940k
Total Cash From Financing Activities2.47M699k940k1.09M
Change In Cash1k-122k-5k-403k