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).

AO1 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 AssetOwl Limited (AO1), the free cash flow value is -1.25M.

All amounts in AUD

Operating Cash
-1.25M
Capital Expenditure
-5.17k
Free Cash Flow
-1.25M

AssetOwl 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).

AO1 Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for AssetOwl Limited (ASX:AO1).

30 Jun 202030 Jun 201930 Jun 201830 Jun 2017
Net Income-1.13M-2.01M-3.42M-1.41M
Depreciation40.38k42.59k43.56k18.7k
Change To Netincome-120k798.35k959.83k-187.62k
Change To Account Receivables-37.64k597.41k-123.64k-489.5k
Change To Liabilities-27.39k-17.05k25.33k-80.01k
Change To Operating Activities26.29k-233.51k155.82k55.99k
Total Cash From Operating Activities-1.25M-822.94k-2.35M-2.09M
Capital Expenditures-5.17k-5.17k-12.28k-48.78k
Total Cashflows From Investing Activities-5.17k1.06k332.72k-32.26k
Net Borrowings120k120k120k-377.44k
Other Cashflows From Financing Activities-124.39k-88.56k-51.03k-408.43k
Total Cash From Financing Activities1.5M1.23M641.9k2.71M
Change In Cash248.32k407.3k-1.38M593.66k
Issuance Of Stock1.5M1.32M692.93k3.5M