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).

## AFR 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 African Energy Resources Limited (AFR), the free cash flow value is -430649.

All amounts in USD

Operating Cash
-430.65k
Capital Expenditure
-
Free Cash Flow
-430649

African Energy Resources 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).

## AFR Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for African Energy Resources Limited (ASX:AFR).

30 Jun 202030 Jun 201930 Jun 201830 Jun 2017
Net Income-3.37M-927.79k-4.01M-1.62M
Depreciation2.5M293.4M917
Change To Netincome480.9k392.59k-292.57k323.87k
Change To Account Receivables29.22k-14.23k101.53k-33.59k
Change To Liabilities-67.79k16.65k-27.53k-54.66k
Total Cash From Operating Activities-430.65k-532.75k-834.51k-1.38M
Investments-447.29k347.95k-371.37k-371.37k
Total Cashflows From Investing Activities-447.29k347.95k-371.37k-371.37k
Effect Of Exchange Rate-50.79k-173.71k-140.72k61.12k
Change In Cash-928.72k-358.5k-321.54k-1.32M