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).

AMO 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 Ambertech Limited (AMO), the free cash flow value is 1.13M.

All amounts in AUD

Operating Cash
1.33M
Capital Expenditure
-200k
Free Cash Flow
1.13M

Ambertech Limited has a positive 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).

AMO Cash Flow Statement History

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

30 Jun 202030 Jun 201930 Jun 201830 Jun 2017
Net Income784k-1.33M-143k-634k
Depreciation1.34M430k305k252k
Change To Netincome-368k27k78k-184k
Change To Account Receivables-1.98M-1.42M-1.73M586k
Change To Liabilities2.65M2.19M2.82M-1.58M
Change To Inventory-803k-288k-1.3M896k
Change To Operating Activities-317k-110k127k-46k
Total Cash From Operating Activities1.33M-480k161k-708k
Capital Expenditures-200k-51k-574k-85k
Total Cashflows From Investing Activities-4.81M-51k-659k-85k
Net Borrowings-1.49M875k343k859k
Other Cashflows From Financing Activities-270k-270k-270k-270k
Total Cash From Financing Activities3.28M875k343k859k
Effect Of Exchange Rate-18k4k4k4k
Change In Cash-218k348k-155k66k
Issuance Of Stock5.05M5.05M5.05M5.05M