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).

## AEE 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 Aura Energy Limited (AEE), the free cash flow value is -1.99M.

All amounts in AUD

Operating Cash
-1.99M
Capital Expenditure
-
Free Cash Flow
-1.99M

Aura Energy Limited 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).

## AEE Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Aura Energy Limited (ASX:AEE).

30 Jun 202030 Jun 201930 Jun 201830 Jun 2017
Net Income-5.88M-2.9M-1.99M-3.69M
Depreciation2.66M186.81k12.38k1.4M
Change To Netincome880.08k-2.09M-2.82M-1.71M
Change To Account Receivables-74.61k18.66k31.07k-2.09k
Change To Liabilities414.48k108.6k-115.8k-208.61k
Total Cash From Operating Activities-1.99M-4.67M-4.88M-4.25M
Net Borrowings350k2M2M2M
Other Cashflows From Financing Activities-17.45k-50k-110.19k-158.37k
Total Cash From Financing Activities1.42M2.62M5.16M6.79M
Effect Of Exchange Rate-1.28k30.33k-90.14k-174k
Change In Cash-577.61k-2.03M191.21k2.34M
Issuance Of Stock1.08M666k5.27M6.95M