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).

APX 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 Appen Limited (APX), the free cash flow value is 91.14M.

All amounts in AUD

Operating Cash
93.57M
Capital Expenditure
-2.43M
Free Cash Flow
91.14M

Appen Limited has a positive 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).

APX Cash Flow Statement History

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

31 Dec 202031 Dec 201931 Dec 201831 Dec 2017
Net Income50.51M41.61M41.73M14.28M
Depreciation16.32M12.49M6.62M473k
Change To Netincome7.93M31.55M10.77M3.58M
Change To Account Receivables15.01M-48.51M-29.65M-9.17M
Change To Liabilities-10.93M4.04M13.12M-1.66M
Change To Operating Activities2.31M8.49M3.78M5.2M
Total Cash From Operating Activities93.57M67.3M46.8M13.38M
Capital Expenditures-2.43M-3.11M-2.83M-3.17M
Total Cashflows From Investing Activities-67.44M-256.04M-7.6M-97.59M
Dividends Paid-11.56M-9.1M-7.43M-5.86M
Net Borrowings-1.27M-61.49M-17.83M69.24M
Total Cash From Financing Activities-12.83M221.94M-25.23M92.81M
Effect Of Exchange Rate-10.14M2.02M2.06M-1.06M
Change In Cash3.16M35.23M16.03M7.54M