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).

## AMS 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 Atomos Limited (AMS), the free cash flow value is -16.81M.

All amounts in AUD

Operating Cash
-13.69M
Capital Expenditure
-3.13M
Free Cash Flow
-16.81M

Atomos 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).

## AMS Cash Flow Statement History

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

30 Jun 202030 Jun 201930 Jun 201830 Jun 2017
Net Income-22.1M-1.96M-16.51M-4.89M
Depreciation2.42M476k278k213k
Change To Netincome8.32M2.92M14.65M605k
Change To Account Receivables3.31M-3.17M-1.19M2.63M
Change To Liabilities187k2.06M2.88M-3.73M
Change To Inventory-7.79M-3.51M-2.02M656k
Change To Operating Activities615k-1.14M-982k34k
Total Cash From Operating Activities-13.69M-3.32M-2.9M-4.87M
Capital Expenditures-3.13M-1.33M-724k-76k
Other Cashflows From Investing Activities-64k-64k-64k-64k
Total Cashflows From Investing Activities-12M-3.12M-4.35M-2.41M
Net Borrowings-2.02M6.55M1M8.29M
Other Cashflows From Financing Activities-2.61M-2.45M-842k-565k
Total Cash From Financing Activities39.37M10.1M7.16M7.73M
Effect Of Exchange Rate-25k12k-7k16k
Change In Cash13.66M3.67M-101k468k
Issuance Of Stock44.01M6M7M7M