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).

## ACP 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 Audalia Resources Limited (ACP), the free cash flow value is -1.25M.

All amounts in AUD

Operating Cash
-237.44k
Capital Expenditure
-1.01M
Free Cash Flow
-1.25M

Audalia Resources 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).

## ACP Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Audalia Resources Limited (ASX:ACP).

30 Jun 2022 30 Jun 2021 30 Jun 2020 30 Jun 2019
Net Income -836.38k -616.47k -734.92k -797.66k
Depreciation 7.59k 2.15k 3.5k 21.28k
Change To Netincome 48.39k -86.76k -17.35k -17.35k
Change To Account Receivables 1.46k -3.7k 16.27k 434
Change To Liabilities 538.89k 449.89k 425.55k 391.13k
Change To Operating Activities 2.61k 8.92k 10.45k 10.67k
Total Cash From Operating Activities -237.44k -245.97k -296.51k -374.14k
Capital Expenditures -1.01M -1.03M -1.55M -1.41M
Other Cashflows From Investing Activities 349.39k 265.97k 296.97k 579.5k
Total Cashflows From Investing Activities -662.02k -759.9k -1.25M -827.16k
Net Borrowings 1.03M 630k 100k -100k
Total Cash From Financing Activities 1.03M 1.02M 1.05M -126.76k
Change In Cash 130.54k 17.73k -497.88k -1.33M