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).

AAR 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 Anglo Australian Resources NL (AAR), the free cash flow value is -4.25M.

All amounts in AUD

Operating Cash
-1.27M
Capital Expenditure
-2.98M
Free Cash Flow
-4.25M

Anglo Australian Resources NL 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).

AAR Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Anglo Australian Resources NL (ASX:AAR).

30 Jun 202030 Jun 201930 Jun 201830 Jun 2017
Net Income-2.71M-656.01k-920.46k-517.15k
Depreciation530.43k26.57k243.91k18.1k
Change To Netincome998.77k170.79k77.1k242.5k
Change To Account Receivables-103.82k1.53k-39.34k-19.05k
Change To Liabilities10.69k-39.78k137.84k45.03k
Total Cash From Operating Activities-1.27M-496.9k-500.96k-230.56k
Capital Expenditures-2.98M-1.79M-1.73M-555.49k
Other Cashflows From Investing Activities3.68k6.31k5.49k1.03k
Total Cashflows From Investing Activities-2.97M-1.79M-1.73M-554.45k
Net Borrowings-72.75k-72.75k-2.99k-41.66k
Other Cashflows From Financing Activities-257.52k-111.24k-111.24k-111.24k
Total Cash From Financing Activities7.2M1.11M3.63M684.39k
Change In Cash2.95M-1.17M1.44M-100.63k
Issuance Of Stock7.53M1.22M3.64M726.05k