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).

## AN1 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 Anagenics Limited (AN1), the free cash flow value is -4.14M.

All amounts in AUD

Operating Cash
-4.11M
Capital Expenditure
-22.47k
Free Cash Flow
-4.14M

Anagenics 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).

## AN1 Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Anagenics Limited (ASX:AN1).

30 Jun 202130 Jun 202030 Jun 201930 Jun 2018
Net Income-3.39M-4.91M-5.91M-3.73M
Depreciation434.63k518.66k152.89k187.54k
Change To Netincome124.64k657.32k461.62k209.81k
Change To Account Receivables146.47k321.5k-1.26M-653.06k
Change To Liabilities-168.56k4241.18M284.06k
Change To Inventory-274.16k-990.95k-355.37k-101.41k
Change To Operating Activities-1.01M387.24k51.79k-357.97k
Total Cash From Operating Activities-4.11M-4.01M-5.67M-4.16M
Capital Expenditures-22.47k-22.47k-65.68k-107.17k
Other Cashflows From Investing Activities500k500k500k500k
Total Cashflows From Investing Activities477.53k477.53k-65.68k-107.17k
Net Borrowings-579.39k-260.02k-1.99M903.48k
Other Cashflows From Financing Activities-433.75k-607.09k-733.79k-384.93k
Total Cash From Financing Activities3.5M7.98M7.27M1.84M
Effect Of Exchange Rate-105.17k-77.75k-63.78k39.42k
Change In Cash-243.2k3.89M1.47M-2.39M
Issuance Of Stock4.51M8.85M10.11M1.33M