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).

## AL3 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 AML3D Limited (AL3), the free cash flow value is -8.13M.

All amounts in AUD

Operating Cash
-6.15M
Capital Expenditure
-1.98M
Free Cash Flow
-8.13M

AML3D 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).

## AL3 Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for AML3D Limited (ASX:AL3).

30 Jun 202130 Jun 202030 Jun 201930 Jun 2018
Net Income-5.51M-3.09M-680.84k-50.3k
Depreciation409k86k73.98k16.97k
Change To Netincome26k967k967k967k
Change To Account Receivables202k-400k-186.8k-119.57k
Change To Liabilities550k592k84.02k43.52k
Change To Inventory-1.92M-112k-112k-112k
Change To Operating Activities93k-224k10.89k5.54k
Total Cash From Operating Activities-6.15M-2.19M-687.86k-96.81k
Capital Expenditures-1.98M-826k-200.71k-198.31k
Investments-20k-36k-36k-36k
Total Cashflows From Investing Activities-2.03M-889k-219.56k-233.22k
Net Borrowings-129k-84k1.57M42.72k
Total Cash From Financing Activities7.16M10.14M1.66M708.83k
Change In Cash-1.03M7.07M753.97k378.79k
Issuance Of Stock7.29M10.23M215k666.11k