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