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