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