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