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