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).

## AIV 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 ActivEX Limited (AIV), the free cash flow value is -747948.

All amounts in AUD

Operating Cash
-310.25k
Capital Expenditure
-437.69k
Free Cash Flow
-747948

ActivEX 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).

## AIV Cash Flow Statement History

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

30 Jun 202030 Jun 201930 Jun 201830 Jun 2017
Net Income-1.52M-785.12k-648.68k-1.16M
Depreciation961.58k225.55k41.6k520.99k
Change To Netincome254.92k124.48k25.29k25.29k
Change To Account Receivables-63.73k-5009.8k-8.95k
Change To Liabilities47.16k8.89k-40.88k-35.35k
Change To Operating Activities13.39k25.79k-120.8k11.11k
Total Cash From Operating Activities-310.25k-400.92k-733.67k-669.4k
Capital Expenditures-437.69k-344.26k-837.05k-1.18M
Total Cashflows From Investing Activities-437.69k-344.26k-832.05k-1.18M
Net Borrowings938.51k715k705k705k
Total Cash From Financing Activities938.51k715k705k1.29M
Change In Cash190.56k-30.18k-860.72k-566.23k