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