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 -575.55M.

All amounts in AUD

Operating Cash
-571.2M
Capital Expenditure
-4.35M
Free Cash Flow
-575.55M

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 202130 Jun 202030 Jun 201930 Jun 2018
Net Income-156.3M-19.78M-42.86M-8.98M
Depreciation13.68M11.01M9M6.71M
Change To Netincome140.91M23.47M28.83M21.34M
Change To Account Receivables-672.18M-329.2M-213.63M-140.68M
Change To Liabilities68.08M10.33M
Change To Operating Activities77.38M61.52M-4.99M2.42M
Total Cash From Operating Activities-571.2M-233.95M-142.19M-98.23M
Capital Expenditures-4.35M-3.39M-2.07M-1.08M
Investments-27.65M-4.53M-866k-2.17M
Other Cashflows From Investing Activities949k1.48M686k524k
Total Cashflows From Investing Activities-110.91M-48.65M-16.29M-14.22M
Net Borrowings1.06B410.11M-111.5M114.66M
Other Cashflows From Financing Activities-654.13M-24.23M-4.26M-21.86M
Total Cash From Financing Activities1.22B649.45M357.13M113.78M
Effect Of Exchange Rate2.81M7.74M246k1.63M
Change In Cash541.11M374.58M198.9M2.96M
Issuance Of Stock813.57M263.56M472.9M20.98M