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).

## RUA 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 Rua Bioscience Limited (RUA), the free cash flow value is -7.25M.

All amounts in NZD

Operating Cash
-6.84M
Capital Expenditure
-400.1k
Free Cash Flow
-7.25M

Rua Bioscience 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).

## RUA Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Rua Bioscience Limited (NZX:RUA).

30 Jun 2022 30 Jun 2021 30 Jun 2020 30 Jun 2019
Net Income -8.64M -4.42M -2.81M -1.97M
Depreciation 814.47k 694.6k 214.81k 47.37k
Change To Netincome 930.36k -1.3M -405.76k -67.43k
Change To Account Receivables 99.12k 370.45k -708.83k -265.87k
Change To Liabilities 14.9k 168.4k 141.46k 158.07k
Change To Inventory -237.59k -237.59k -237.59k -237.59k
Change To Operating Activities 169.88k 35.93k -56.45k 143.85k
Total Cash From Operating Activities -6.84M -4.45M -3.63M -1.95M
Capital Expenditures -400.1k -1.4M -5.02M -455.08k
Investments 5M -13.12M 2M -2M
Other Cashflows From Investing Activities 113.36k 69.28k 47.62k 21.18k
Total Cashflows From Investing Activities 5.59M -14.43M -2.97M -2.43M
Net Borrowings -164.05k -161.08k -64.16k 83.02k
Other Cashflows From Financing Activities -44.59k -1.54M -573.95k -513.79k
Total Cash From Financing Activities -208.64k 18.3M 6.36M 8.56M
Change In Cash -1.46M -578.02k -235.62k 4.17M