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).

AR9 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 archTIS Limited (AR9), the free cash flow value is -2.84M.

All amounts in AUD

Operating Cash
-2.84M
Capital Expenditure
-3.64k
Free Cash Flow
-2.84M

archTIS 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).

AR9 Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for archTIS Limited (ASX:AR9).

30 Jun 202030 Jun 201930 Jun 201830 Jun 2017
Net Income-3.73M-3.93M-2.15M-1.13M
Depreciation209.42k67.53k60.91k63.63k
Change To Netincome90.05k1.16M625.06k625.06k
Change To Account Receivables-3.79k65.6k201.77k797.9k
Change To Liabilities-95.49k-24.28k-637.66k41.75k
Change To Operating Activities-592.67k-2.48M-1.44M-656.71k
Total Cash From Operating Activities-2.84M-5.55M-3.64M-1.12M
Capital Expenditures-3.64k-3.64k-43.54k-59.99k
Total Cashflows From Investing Activities-3.64k24.41k-43.54k-59.99k
Net Borrowings-101.68k-300k-300k300k
Other Cashflows From Financing Activities-239.17k-1.44M-691.41k-245.35k
Total Cash From Financing Activities2.01M7.08M5.53M1.04M
Change In Cash-826.55k1.56M1.85M-136.72k
Issuance Of Stock2.36M8.83M6.23M988.85k