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).

ADY 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 Admiralty Resources NL (ADY), the free cash flow value is -1.42M.

All amounts in AUD

Operating Cash
-651.4k
Capital Expenditure
-773.48k
Free Cash Flow
-1.42M

Admiralty Resources NL 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).

ADY Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Admiralty Resources NL (ASX:ADY).

30 Jun 202030 Jun 201930 Jun 201830 Jun 2017
Net Income-1.55M-1.14M-3.03M1.45M
Depreciation10.05k14.84k26.83k49.94k
Change To Netincome836.3k674.27k2.13M-2.33M
Change To Account Receivables93.91k-531.52k-24.81k28.79k
Change To Liabilities-45.83k115.74k67.92k-151.26k
Total Cash From Operating Activities-651.4k-862.63k-837.18k-1.03M
Capital Expenditures-773.48k-718.11k-33.52k-99.76k
Total Cashflows From Investing Activities-773.48k-718.11k-33.52k-99.76k
Net Borrowings1.41M1.39M1.03M971.04k
Total Cash From Financing Activities1.41M1.44M1.03M981.43k
Change In Cash-11.74k-127.12k148.57k-151.22k