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).

AKP 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 Audio Pixels Holdings Limited (AKP), the free cash flow value is -7.46M.

All amounts in AUD

Operating Cash
-7.46M
Capital Expenditure
-
Free Cash Flow
-7.46M

Audio Pixels Holdings 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).

AKP Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Audio Pixels Holdings Limited (ASX:AKP).

31 Dec 202031 Dec 201931 Dec 201831 Dec 2017
Net Income-12.1M-6.23M-4.52M-5.91M
Depreciation426.58k405.84k70.88k79.64k
Change To Netincome4.03M315.31k-169.9k2.14M
Change To Account Receivables93.71k30.82k-116.87k35.77k
Change To Liabilities-17.88k660.72k100.08k415.9k
Change To Operating Activities32.9k58.82k-36.36k-400.14k
Total Cash From Operating Activities-7.46M-4.68M-4.59M-3.56M
Total Cashflows From Investing Activities-105.04k-223.31k-45.73k-263.96k
Net Borrowings-338.78k-286.89k3.5M1.5M
Total Cash From Financing Activities6.54M-286.89k13M1.5M
Effect Of Exchange Rate-45.98k-9.74k-43.03k-58.02k
Change In Cash-1.07M-5.2M8.32M-2.38M
Issuance Of Stock6.88M6.88M9.5M9.5M