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).

AV1 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 Adveritas Limited (AV1), the free cash flow value is -7.25M.

All amounts in AUD

Operating Cash
-7.23M
Capital Expenditure
-14.97k
Free Cash Flow
-7.25M

Adveritas 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).

AV1 Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Adveritas Limited (ASX:AV1).

30 Jun 202030 Jun 201930 Jun 201830 Jun 2017
Net Income-9.49M-6.55M-7.51M417.21k
Depreciation136.34k39.19k52.63k79.85k
Change To Netincome2.3M-211.48k372.17k1.07M
Change To Account Receivables-314.48k-133.79k2.39M-246.49k
Change To Liabilities39.56k-21.56k-527.65k148.82k
Change To Operating Activities92.63k25.02k67.34k196.53k
Total Cash From Operating Activities-7.23M-6.93M-5.78M2M
Capital Expenditures-14.97k-28.36k-26.03k-120.67k
Other Cashflows From Investing Activities29.46k170.34k170.34k170.34k
Total Cashflows From Investing Activities14.49k142.88k-26.03k-149.67k
Net Borrowings-59.1k61.4k-1.01M1.12M
Other Cashflows From Financing Activities-387.31k-263.25k-120k-120k
Total Cash From Financing Activities13.53M4.52M1.87M1.12M
Effect Of Exchange Rate-4.88k74.86k-28.19k-372.07k
Change In Cash6.3M-2.18M-3.97M2.6M
Issuance Of Stock13.97M4.73M3M3M