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