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).

## APT 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 Afterpay Limited (APT), the free cash flow value is -237.34M.

All amounts in AUD

Operating Cash
-233.95M
Capital Expenditure
-3.39M
Free Cash Flow
-237.34M

Afterpay 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).

## APT Cash Flow Statement History

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

30 Jun 202030 Jun 201930 Jun 201830 Jun 2017
Net Income-19.78M-42.86M-8.98M-9.62M
Depreciation11.01M9M6.71M21k
Change To Netincome23.47M28.83M21.34M5.16M
Change To Account Receivables-329.2M-213.63M-140.68M-84.84M
Change To Liabilities73.5M68.08M10.33M5.94M
Change To Operating Activities-11.98M-4.99M2.42M-4.12M
Total Cash From Operating Activities-233.95M-142.19M-98.23M-78.87M
Capital Expenditures-3.39M-2.07M-1.08M-78k
Investments-4.53M-866k-2.17M-100k
Other Cashflows From Investing Activities1.48M686k524k433k
Total Cashflows From Investing Activities-48.65M-16.29M-14.22M16.97M
Net Borrowings410.11M-111.5M114.66M37.85M
Other Cashflows From Financing Activities-24.23M-4.26M-21.86M-2.13M
Total Cash From Financing Activities649.45M357.13M113.78M71.77M
Effect Of Exchange Rate7.74M246k1.63M1.63M
Change In Cash374.58M198.9M2.96M9.88M
Issuance Of Stock263.56M472.9M20.98M36.05M