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).

ACB 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 A-Cap Energy Limited (ACB), the free cash flow value is -2.43M.

All amounts in AUD

Operating Cash
-1.48M
Capital Expenditure
-947.49k
Free Cash Flow
-2.43M

A-Cap Energy 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).

ACB Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for A-Cap Energy Limited (ASX:ACB).

30 Jun 202030 Jun 201930 Jun 201830 Jun 2017
Net Income-29.05M-8.7M-1.46M-2.76M
Depreciation27.64M5.56M11.89k74.92k
Change To Netincome28.12k445k11.13k971.57k
Change To Account Receivables9.02k-55.12k171.19k-106.55k
Change To Liabilities-104.51k133.32k-190.48k-240.84k
Total Cash From Operating Activities-1.48M-2.61M-1.45M-2.06M
Capital Expenditures-947.49k-4.08M-1.48M-2.02M
Total Cashflows From Investing Activities-859.34k-4.06M-1.36M-2.02M
Net Borrowings700k7.54M7.54M7.54M
Total Cash From Financing Activities700k7.54M-29.06k3.93M
Effect Of Exchange Rate-32.88k-32.88k-32.88k-32.88k
Change In Cash-1.67M862.28k-2.84M-156.71k