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).

## ADN 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 Andromeda Metals Limited (ADN), the free cash flow value is -4.31M.

All amounts in AUD

Operating Cash
-1.08M
Capital Expenditure
-3.23M
Free Cash Flow
-4.31M

Andromeda Metals 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).

## ADN Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Andromeda Metals Limited (ASX:ADN).

30 Jun 202030 Jun 201930 Jun 201830 Jun 2017
Net Income-3.45M-1.11M-832.71k-6.91M
Depreciation437.8k139.36k90.64k6.34M
Change To Netincome1.82M119.37k-58.01k-120.73k
Change To Account Receivables13k-52.22k-17.53k34.04k
Change To Liabilities-1.85k41.54k1.9k28.64k
Change To Operating Activities17.34k4.74k7.51k-2.41k
Total Cash From Operating Activities-1.08M-788.26k-659.04k-564.61k
Capital Expenditures-3.23M-1.35M-775.65k-752.88k
Investments42.04k300k300k300k
Other Cashflows From Investing Activities77.22k-6.8k254.08k185.01k
Total Cashflows From Investing Activities-2.46M-1.06M-617.37k-545.87k
Net Borrowings-28.57k-28.57k-28.57k-28.57k
Other Cashflows From Financing Activities-274.68k-210.46k-222.26k-96.88k
Total Cash From Financing Activities4.87M2.65M1.87M1.03M
Change In Cash1.33M807.98k592.88k-80.06k
Issuance Of Stock5.17M2.86M2.09M1.13M