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).

## ARX 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 Aroa Biosurgery Limited (ARX), the free cash flow value is -15.98M.

All amounts in NZD

Operating Cash
-11.52M
Capital Expenditure
-4.46M
Free Cash Flow
-15.98M

Aroa Biosurgery 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).

## ARX Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Aroa Biosurgery Limited (ASX:ARX).

31 Mar 2022 31 Mar 2021 31 Mar 2020 31 Mar 2019
Net Income -8.39M -19.21M -5.96M 960k
Depreciation 3.13M 3.05M 2.72M 2.06M
Change To Netincome 4.32M 10.12M 6.01M -392k
Change To Account Receivables -10.39M -489k -1.68M -2.66M
Change To Liabilities 1.32M -298k 2.27M 730k
Change To Inventory -323k 632k -1.33M -889k
Change To Operating Activities -1.34M -826k -26k -83k
Total Cash From Operating Activities -11.52M -5.01M 1.66M -7k
Capital Expenditures -4.46M -1.26M -1.69M -1.56M
Investments -30M -20M -20M -20M
Total Cashflows From Investing Activities -34.87M -21.5M -1.87M -3.71M
Net Borrowings -10.09M -12.92M -6.1M -4.73M
Other Cashflows From Financing Activities -2.6M 15.07M 5.42M 5.42M
Total Cash From Financing Activities 37.63M 37.1M -384k 4.13M
Effect Of Exchange Rate -456k 939k -13k 156k
Change In Cash -9.22M 11.53M -607k 579k
Issuance Of Stock 50.32M 34.95M 296k 8.87M