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).

ACS 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 Accent Resources N.L. (ACS), the free cash flow value is -1.26M.

All amounts in AUD

Operating Cash
-736.88k
Capital Expenditure
-522.65k
Free Cash Flow
-1.26M

Accent Resources N.L. 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).

ACS Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Accent Resources N.L. (ASX:ACS).

30 Jun 202030 Jun 201930 Jun 201830 Jun 2017
Net Income-2.02M-2.76M-2.57M-3.11M
Depreciation239.22k1.64M369.81k230.22k
Change To Netincome969.53k685.7k1.79M2.4M
Change To Account Receivables15.96k-3.64k-6336.77k
Change To Liabilities57.41k-9.32k32.57k41.58k
Total Cash From Operating Activities-736.88k-444.22k-381.52k-438.97k
Capital Expenditures-522.65k-548.55k-617.78k-597.56k
Total Cashflows From Investing Activities-522.65k-548.55k-617.78k-573.06k
Net Borrowings1.99M1M1M1M
Total Cash From Financing Activities1.99M1M1M1M
Change In Cash730.95k7.23k704-12.03k