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).

ART 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 Airtasker Limited (ART), the free cash flow value is -700000.

All amounts in AUD

Operating Cash
-600k
Capital Expenditure
-100k
Free Cash Flow
-700000

Airtasker 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).

ART Cash Flow Statement History

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

30 Jun 202030 Jun 2019
Net Income-10.3M-29.7M
Depreciation1.2M900k
Change To Netincome7.7M8.3M
Change To Liabilities
Change To Operating Activities800k2.9M
Total Cash From Operating Activities-600k-17.6M
Capital Expenditures-100k-200k
Other Cashflows From Investing Activities100k100k
Total Cashflows From Investing Activities-2.5M-600k
Net Borrowings100k9.4M
Other Cashflows From Financing Activities-100k-100k
Total Cash From Financing Activities10.4M12.3M
Change In Cash7.3M-5.9M
Issuance Of Stock10.4M3M