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).

ADX 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 ADX Energy Ltd (ADX), the free cash flow value is -5.43M.

All amounts in AUD

Operating Cash
-1.45M
Capital Expenditure
-3.98M
Free Cash Flow
-5.43M

ADX Energy Ltd 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).

ADX Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for ADX Energy Ltd (ASX:ADX).

31 Dec 202031 Dec 201931 Dec 201831 Dec 2017
Net Income-4.28M-979.7k-2.38M-2.17M
Depreciation3.2M235.23k235.23k235.23k
Change To Netincome334.28k-55.09k549.18k-371.79k
Change To Account Receivables1.05M-2.73M-603.37k35.69k
Change To Liabilities-1.22M255.92k-284.05k265.67k
Change To Inventory-205.23k-315.16k-315.16k-315.16k
Change To Operating Activities-255.19k199.54k199.54k256.19k
Total Cash From Operating Activities-1.45M-3.33M-2.72M-1.98M
Capital Expenditures-3.98M-8.5M-8.5M-8.5M
Other Cashflows From Investing Activities202k304.21k16k-19k
Total Cashflows From Investing Activities-3.78M-8.24M-58.64k1.16M
Net Borrowings1.08M4.71M4.71M4.71M
Other Cashflows From Financing Activities-107.36k5.59M3.34M-131.2k
Total Cash From Financing Activities2.3M13.09M4.09M1.89M
Effect Of Exchange Rate116.7k129.14k150.46k35.62k
Change In Cash-2.81M1.65M1.46M1.11M
Issuance Of Stock1.33M2.8M750k2.02M