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).

## ANO 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 Advance NanoTek Limited (ANO), the free cash flow value is -3.23M.

All amounts in AUD

Operating Cash
120.06k
Capital Expenditure
-3.35M
Free Cash Flow
-3.23M

Advance NanoTek 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).

## ANO Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Advance NanoTek Limited (ASX:ANO).

30 Jun 202030 Jun 201930 Jun 201830 Jun 2017
Net Income5.33M9.64M2.63M561.17k
Depreciation762.71k288.87k241.02k231.85k
Change To Netincome-280.25k-200.53k381.85k177.86k
Change To Account Receivables-2.61M-438.43k336.74k-1.14M
Change To Liabilities2.05M-5.74M-1.52M-199.88k
Change To Inventory-5.09M-2.11M-501.03k728.75k
Change To Operating Activities-40.89k-1.17M-291.47k-384.78k
Total Cash From Operating Activities120.06k261.99k1.28M-22.95k
Capital Expenditures-3.35M-2.17M-167.92k-87.72k
Total Cashflows From Investing Activities-3.77M-2.68M-386.78k-161.72k
Net Borrowings-377.5k-377.5k-377.5k-377.5k
Total Cash From Financing Activities3.56M1.64M-677.08k-677.08k
Change In Cash-92.74k-768.86k213.11k-287.91k
Issuance Of Stock3.94M1.64M1.64M1.64M