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).

AGS 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 Alliance Resources Limited (AGS), the free cash flow value is -4.11M.

All amounts in AUD

Operating Cash
-1.03M
Capital Expenditure
-3.07M
Free Cash Flow
-4.11M

Alliance 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).

AGS Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Alliance Resources Limited (ASX:AGS).

30 Jun 202030 Jun 201930 Jun 201830 Jun 2017
Net Income-1.75M-1.65M-1.27M-1.15M
Depreciation442k478k98k246k
Change To Netincome171k22k49k-61k
Change To Account Receivables57k14k14k-78k
Change To Liabilities126k-71k-114k170k
Change To Operating Activities-80k47k13k-28k
Total Cash From Operating Activities-1.03M-1.16M-1.23M-901k
Capital Expenditures-3.07M-4.08M-402k-1.13M
Total Cashflows From Investing Activities-3.07M-4.83M-2.86M-5.94M
Net Borrowings-23k-23k-23k-23k
Other Cashflows From Financing Activities-61k-310k-310k-5k
Total Cash From Financing Activities1.98M4.27M4.27M-8.35M
Change In Cash-2.13M-1.72M-4.09M-15.19M
Issuance Of Stock2.06M4.58M4.58M4.58M