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