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).

## ABL 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 Abilene Oil and Gas Limited (ABL), the free cash flow value is -397388.

All amounts in AUD

Operating Cash
-281.29k
Capital Expenditure
-116.1k
Free Cash Flow
-397388

Abilene Oil and Gas 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).

## ABL Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Abilene Oil and Gas Limited (ASX:ABL).

30 Jun 201930 Jun 201830 Jun 201730 Jun 2016
Net Income-1.07M-1.33M-3.23M-976.23k
Depreciation243.44k262.21k1.97M125.76k
Change To Netincome421.18k765.93k404.55k474.03k
Change To Account Receivables-2.25k-9839.01k12.7k
Change To Liabilities131.69k51.29k467.75k325.51k
Change To Operating Activities-4.16k-82-1.03k-249
Total Cash From Operating Activities-281.29k-251.93k-378.65k-38.48k
Capital Expenditures-116.1k-332.23k-194.31k-1.12M
Other Cashflows From Investing Activities657.89k457.23k457.23k457.23k
Total Cashflows From Investing Activities541.79k125k-283.81k-3.8M
Other Cashflows From Financing Activities-489.68k-489.68k-489.68k-44.14k
Total Cash From Financing Activities-489.68k420k606k3.84M
Effect Of Exchange Rate-2.36k-2.15k-23.05k15.52k
Change In Cash-231.53k290.93k-79.5k17.62k