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).

## AT1 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 Atomo Diagnostics Limited (AT1), the free cash flow value is -7.08M.

All amounts in AUD

Operating Cash
-6.26M
Capital Expenditure
-818.69k
Free Cash Flow
-7.08M

Atomo Diagnostics 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).

## AT1 Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Atomo Diagnostics Limited (ASX:AT1).

30 Jun 202030 Jun 201930 Jun 201830 Jun 2017
Net Income-9.22M-5.06M-4.9M-5.15M
Depreciation687.09k560.61k329.25k243.98k
Change To Netincome5.25M807.45k-1.73M776.7k
Change To Account Receivables-2.94M2.35M23.46k-206.18k
Change To Liabilities247.03k7.44k288.91k-684.97k
Change To Inventory-421.96k-529.23k419.34k-246.8k
Change To Operating Activities134.25k20.5k9.58k10.49k
Total Cash From Operating Activities-6.26M-1.84M-5.56M-5.26M
Capital Expenditures-818.69k-739.91k-552.59k-447.23k
Total Cashflows From Investing Activities-1.99M-813.36k-642.63k-606.48k
Net Borrowings5.8M5.8M5.8M1.3M
Total Cash From Financing Activities33.61M2.43M2.43M7.28M
Effect Of Exchange Rate-103.23k79.64k-80.01k-188.09k
Change In Cash25.25M-137.89k-6.28M1.23M
Issuance Of Stock27.81M2.43M2.43M5.98M