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 -1.66M.

All amounts in AUD

Operating Cash
-1.4M
Capital Expenditure
-253.68k
Free Cash Flow
-1.66M

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 202030 Sep 201930 Sep 201830 Sep 2017
Net Income-1.51M931.42k342.11k-2.04M
Depreciation211.74k160.64k600.22k38.18k
Change To Netincome-323.88k-1.99M262.09k2.88M
Change To Account Receivables-155.78k502.04k56.87k-78k
Change To Liabilities321.58k166.28k-4.84k12.45k
Change To Operating Activities49.53k-20.87k-20.87k-104.61k
Total Cash From Operating Activities-1.4M-133.93k1.38M816.8k
Capital Expenditures-253.68k-24.43k-35.48k-4.43M
Investments44.44k40.48k37.52k-75k
Other Cashflows From Investing Activities102.17k30.63k30.63k30.63k
Total Cashflows From Investing Activities1.18M106.29k236.47k-3.68M
Net Borrowings143.29k308.74k-58.99k1.71M
Other Cashflows From Financing Activities-35k-1M-1M-166.19k
Total Cash From Financing Activities1.83M-691.26k-58.99k1.82M
Change In Cash1.61M-718.89k1.55M-1.04M
Issuance Of Stock1.72M1.72M1.72M270k