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