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