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 -6.27M.

All amounts in NZD

Operating Cash
-5.01M
Capital Expenditure
-1.26M
Free Cash Flow
-6.27M

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 202131 Mar 202031 Mar 201931 Mar 2018
Net Income-19.21M-5.96M960k-1.28M
Depreciation3.05M2.72M2.06M732k
Change To Netincome10.12M6.01M-392k-524k
Change To Account Receivables-489k-1.68M-2.66M-1.63M
Change To Liabilities-298k2.27M730k256k
Change To Inventory632k-1.33M-889k-500k
Change To Operating Activities-826k-26k-83k22k
Total Cash From Operating Activities-5.01M1.66M-7k-3.04M
Capital Expenditures-1.26M-1.69M-1.56M-1.57M
Investments-20M-20M-20M7M
Total Cashflows From Investing Activities-21.5M-1.87M-3.71M5.32M
Net Borrowings-12.92M-6.1M-4.73M396k
Other Cashflows From Financing Activities15.07M5.42M5.42M5.42M
Total Cash From Financing Activities37.1M-384k4.13M444k
Effect Of Exchange Rate939k-13k156k80k
Change In Cash11.53M-607k579k2.81M
Issuance Of Stock34.95M296k8.87M48k