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 -130230.

All amounts in NZD

Operating Cash
-125.83k
Capital Expenditure
-4.4k
Free Cash Flow
-130230

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 2022 31 Mar 2021 31 Mar 2020 31 Mar 2019
Net Income -410.22k -632.46k -615.55k -583.18k
Depreciation 200.29k 240.09k 246.99k 109.07k
Change To Netincome -217.67k -72.51k -218.83k -207.9k
Change To Account Receivables 46.92k 119.4k -71.39k 353.63k
Change To Liabilities 53.08k -106.08k 54.02k -117.11k
Change To Inventory 31.4k -14.8k 31.06k -81.97k
Change To Operating Activities 170.37k 238k 423.86k 132.92k
Total Cash From Operating Activities -125.83k -228.36k -149.84k -394.53k
Capital Expenditures -4.4k -4.4k -4.18k -25.98k
Total Cashflows From Investing Activities -4.4k 1.74k -1.76k -24.92k
Net Borrowings 147.44k 25.16k 144.94k 144.94k
Total Cash From Financing Activities 147.44k 25.16k 144.94k 144.94k
Effect Of Exchange Rate -6.13k 6.93k -36.08k -5.68k
Change In Cash 11.08k -194.53k -42.74k -425.13k