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).

## AHQ 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 Allegiance Coal Limited (AHQ), the free cash flow value is -30.51M.

All amounts in AUD

Operating Cash
-7.65M
Capital Expenditure
-22.86M
Free Cash Flow
-30.51M

Allegiance Coal 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).

## AHQ Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Allegiance Coal Limited (ASX:AHQ).

30 Jun 202130 Jun 202030 Jun 201931 Dec 2018
Net Income-15.8M-9.18M-1.47M
Depreciation583.97k583.97k583.97k583.97k
Change To Netincome3.88M2.76M98.28k98.28k
Change To Account Receivables-393.62k12.46k10.3k10.3k
Change To Liabilities4.36M660.15k-344.24k
Change To Inventory-286.38k-286.38k-286.38k-286.38k
Total Cash From Operating Activities-7.65M-5.76M-1.7M-1.7M
Capital Expenditures-22.86M-5.6M-5.8M-5.8M
Other Cashflows From Investing Activities4.64M4.64M4.64M4.64M
Total Cashflows From Investing Activities-18.19M-5.6M-5.8M-5.8M
Net Borrowings-13.12M1.6M943.13k943.13k
Other Cashflows From Financing Activities-3.02M1.44M1.24M1.24M
Total Cash From Financing Activities44.09M9.21M7.17M7.17M
Change In Cash18.25M-2.15M-339.56k-339.56k
Issuance Of Stock60.23M6.16M4.98M4.98M