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