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