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).

ABR 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 American Pacific Borates Limited (ABR), the free cash flow value is -8.23M.

All amounts in AUD

Operating Cash
-2.15M
Capital Expenditure
-6.08M
Free Cash Flow
-8.23M

American Pacific Borates 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).

ABR Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for American Pacific Borates Limited (ASX:ABR).

30 Jun 202030 Jun 201930 Jun 201830 Jun 2017
Net Income-5.19M-3.02M-2.8M-1.27M
Depreciation28.07k14.12k5.79k5.79k
Change To Netincome2.97M762.59k958.48k551.14k
Change To Account Receivables-14.07k-37.62k-5.47k-99.36k
Change To Liabilities60.43k25.5k-99.39k452.47k
Total Cash From Operating Activities-2.15M-2.26M-1.94M-368.51k
Capital Expenditures-6.08M-4.57M-9.43M-1.91M
Total Cashflows From Investing Activities-6.08M-4.57M-9.43M-1.91M
Net Borrowings463.24k463.24k463.24k463.24k
Other Cashflows From Financing Activities-1.6M-462.78k-1.01M-141.1k
Total Cash From Financing Activities44.19M6.82M9.13M9.61M
Effect Of Exchange Rate-110.85k19.44k235.97k235.97k
Change In Cash35.85M12.1k-2M7.32M
Issuance Of Stock45.33M7.28M10.14M9.75M