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).

AYI 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 A1 Investments & Resources Ltd (AYI), the free cash flow value is -738542.

All amounts in AUD

Operating Cash
-712.09k
Capital Expenditure
-26.45k
Free Cash Flow
-738542

A1 Investments & Resources Ltd 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).

AYI Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for A1 Investments & Resources Ltd (ASX:AYI).

30 Jun 202030 Jun 201930 Jun 201830 Jun 2017
Net Income-1.14M-2.58M-1.08M-1.81M
Depreciation47.79k36.64k26.47k15.25k
Change To Netincome562.35k2.05M430.14k294.48k
Change To Account Receivables344.55k-159.69k-229.12k-144.9k
Change To Liabilities84.4k48.65k201.99k135.18k
Change To Inventory-6.78k-6.78k-47.22k145.34k
Change To Operating Activities-601.09k-601.09k-601.09k-601.09k
Total Cash From Operating Activities-712.09k-603.02k-695.44k-1.36M
Capital Expenditures-26.45k-178-252.53k-3.29M
Investments-49101010
Total Cashflows From Investing Activities171.81k-211.06k-252.53k-3.3M
Net Borrowings1.61M52.71k973.04k3.84M
Total Cash From Financing Activities2.3M1.24M973.04k3.84M
Change In Cash1.76M421.5k25.07k-830.54k
Issuance Of Stock695.32k1.18M1.18M1.18M