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).

AMX 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 Aerometrex Limited (AMX), the free cash flow value is 1.10M.

All amounts in AUD

Operating Cash
8.16M
Capital Expenditure
-7.06M
Free Cash Flow
1.10M

Aerometrex 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).

AMX Cash Flow Statement History

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

30 Jun 202030 Jun 201930 Jun 201830 Jun 2017
Net Income-293k2.56M1.84M2k
Depreciation3.79M1.98M1.13M1.15M
Change To Netincome490k13k-599k114k
Change To Account Receivables960k-378k-378k-378k
Change To Liabilities3.4M1.04M
Change To Operating Activities107k139k139k139k
Total Cash From Operating Activities8.16M5.09M2.37M1.26M
Capital Expenditures-7.06M-2.62M-4.72M-169k
Total Cashflows From Investing Activities-11.56M-4.18M-5.41M-169k
Net Borrowings-2.25M4.65M3.44M-567k
Other Cashflows From Financing Activities-2.23M-2.23M-2.23M-2.23M
Total Cash From Financing Activities20.53M3.22M3.07M-747k
Change In Cash17.13M4.14M29k348k
Issuance Of Stock25M25M25M25M