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