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