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