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).

## AUA 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 Audeara Limited (AUA), the free cash flow value is -1.09M.

All amounts in AUD

Operating Cash
-1.08M
Capital Expenditure
-5.95k
Free Cash Flow
-1.09M

Audeara 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).

## AUA Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Audeara Limited (ASX:AUA).

30 Jun 202130 Jun 202030 Jun 2019
Net Income-1.25M-454k-1.5M
Depreciation55.17k37.12k4k
Change To Netincome136.81k72.6k15k
Change To Account Receivables-40.64k42.3k42.3k
Change To Liabilities172.51k-23.03k
Change To Inventory-235.11k241k241k
Change To Operating Activities82.26k18.47k18.47k
Total Cash From Operating Activities-1.08M-65.53k-1.48M
Capital Expenditures-5.95k-1.46k-3k
Total Cashflows From Investing Activities-23.71k-17.25k-15k
Net Borrowings570.17k-35.12k916k
Other Cashflows From Financing Activities-474.09k-474.09k-8k
Total Cash From Financing Activities7.1M-35.12k1.06M
Change In Cash5.99M-117.91k-438k
Issuance Of Stock7M7M150k