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