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).

AFC 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 AFC Group Holdings Limited (AFC), the free cash flow value is -228360.

All amounts in NZD

Operating Cash
Capital Expenditure
Free Cash Flow

AFC Group Holdings 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).

AFC Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for AFC Group Holdings Limited (NZX:AFC).

31 Mar 202131 Mar 202031 Mar 201931 Mar 2018
Net Income-632.46k-615.55k-583.18k-412.41k
Change To Netincome-72.51k-218.83k-207.9k-64.33k
Change To Account Receivables119.4k-71.39k353.63k121.46k
Change To Liabilities-106.08k54.02k-117.11k-910.32k
Change To Inventory-14.8k31.06k-81.97k-73.37k
Change To Operating Activities238k423.86k132.92k979.44k
Total Cash From Operating Activities-228.36k-149.84k-394.53k-162.66k
Total Cashflows From Investing Activities1.74k-1.76k-24.92k-43.26k
Net Borrowings25.16k144.94k144.94k-119.7k
Total Cash From Financing Activities25.16k144.94k144.94k80.3k
Effect Of Exchange Rate6.93k-36.08k-5.68k13.55k
Change In Cash-194.53k-42.74k-425.13k-112.06k