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