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).

## 1AG 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 Alterra Limited (1AG), the free cash flow value is -2.03M.

All amounts in AUD

Operating Cash
-1.71M
Capital Expenditure
-321.94k
Free Cash Flow
-2.03M

Alterra 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).

## 1AG Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Alterra Limited (ASX:1AG).

30 Sep 202130 Sep 202030 Sep 201930 Sep 2018
Net Income-2.22M-1.51M931.42k342.11k
Depreciation87.16k211.74k160.64k600.22k
Change To Netincome297.02k-323.88k-1.99M262.09k
Change To Account Receivables18.98k-155.78k502.04k56.87k
Change To Liabilities-44.41k321.58k166.28k-4.84k
Change To Operating Activities156.37k49.53k-20.87k-20.87k
Total Cash From Operating Activities-1.71M-1.4M-133.93k1.38M
Capital Expenditures-321.94k-253.68k-24.43k-35.48k
Other Cashflows From Investing Activities128.34k102.17k30.63k30.63k
Total Cashflows From Investing Activities504.53k1.18M106.29k236.47k
Net Borrowings-1.28M143.29k308.74k-58.99k
Other Cashflows From Financing Activities-78.34k-35k-1M-1M
Total Cash From Financing Activities2.26M1.83M-691.26k-58.99k
Change In Cash1.06M1.61M-718.89k1.55M
Issuance Of Stock3.62M1.72M1.72M1.72M