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).

## AGD 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 Austral Gold Limited (AGD), the free cash flow value is 18.49M.

All amounts in USD

Operating Cash
30.48M
Capital Expenditure
-11.99M
Free Cash Flow
18.49M

Austral Gold Limited has a positive 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).

## AGD Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Austral Gold Limited (ASX:AGD).

31 Dec 202031 Dec 201931 Dec 201831 Dec 2017
Net Income7.67M5.22M-26.06M-26.6M
Depreciation17.02M21.12M23.43M27.82M
Change To Netincome12.27M7M16.77M2.79M
Change To Account Receivables1.32M1.42M3.88M4.63M
Change To Liabilities-1.86M-6.32M-5.17M16.69M
Change To Inventory-4.65M2.48M8.68M-6.97M
Change To Operating Activities-1.27M-1.29M-189k-189k
Total Cash From Operating Activities30.48M29.64M21.34M18.36M
Capital Expenditures-11.99M-12.81M-17.62M-16.64M
Investments-2.61M-1.73M-409k492k
Other Cashflows From Investing Activities-2M27k84k84k
Total Cashflows From Investing Activities-16.23M-14.67M-17.74M-16.14M
Net Borrowings-7.54M-8.26M-8.49M-1.18M
Other Cashflows From Financing Activities-434k-524k-524k-524k
Total Cash From Financing Activities-11.05M-7.48M-8.49M-1.18M
Change In Cash3.21M7.48M-4.9M1.04M
Issuance Of Stock421k1.3M1.3M1.3M