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).

ADD 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 Adavale Resources Limited (ADD), the free cash flow value is -1.32M.

All amounts in AUD

Operating Cash
-1.3M
Capital Expenditure
-15.56k
Free Cash Flow
-1.32M

Adavale 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).

ADD Cash Flow Statement History

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

30 Jun 202130 Jun 202030 Jun 201930 Jun 2018
Net Income-2.05M-534.98k-527.09k122.45k
Depreciation2.91k2.91k2.91k2.91k
Change To Netincome403.57k189.82k229.57k-537.65k
Change To Account Receivables9.6k4.4k-3.82k-7.11k
Change To Liabilities326.33k21.61k31.74k31.02k
Total Cash From Operating Activities-1.3M-319.14k-269.6k-391.29k
Capital Expenditures-15.56k-15.56k-15.56k-15.56k
Total Cashflows From Investing Activities-15.56k-15.56k-15.56k-15.56k
Other Cashflows From Financing Activities4.7k4.7k4.7k4.7k
Total Cash From Financing Activities2.66M380.93k280k358.16k
Change In Cash1.34M61.79k10.39k-33.13k
Issuance Of Stock2.65M335.93k335.93k308.16k