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).

ADT 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 Adriatic Metals PLC (ADT), the free cash flow value is -7.98M.

All amounts in GBP

Operating Cash
-2.81M
Capital Expenditure
-5.18M
Free Cash Flow
-7.98M

Adriatic Metals PLC 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).

ADT Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Adriatic Metals PLC (ASX:ADT).

30 Jun 202030 Jun 201930 Jun 201830 Jun 2017
Net Income-6.24M-2.42M-1.93M-701.54k
Depreciation89.68k88.67k8.91k5.75k
Change To Netincome2.93M711.06k1.16M60.97k
Change To Account Receivables-85.44k-214.01k-130.02k-41.3k
Change To Liabilities498.07k63.11k-89.55k448.46k
Total Cash From Operating Activities-2.81M-1.77M-976.85k-227.72k
Capital Expenditures-5.18M-106k-40.3k-95.81k
Other Cashflows From Investing Activities37.74k37.51k37.51k37.51k
Total Cashflows From Investing Activities-6.02M-3.08M-796.77k-1.54M
Other Cashflows From Financing Activities-11.58k-11.58k-11.58k-11.58k
Total Cash From Financing Activities13.28M5.85M6.11M2.52M
Effect Of Exchange Rate111.74k-273.23k-273.23k-273.23k
Change In Cash4.57M725.37k4.33M747.53k
Issuance Of Stock13.3M5.85M6.11M2.52M