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