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
Capital Expenditure
Free Cash Flow

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