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).

AIS 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 Aeris Resources Limited (AIS), the free cash flow value is 9.87M.

All amounts in AUD

Operating Cash
Capital Expenditure
Free Cash Flow

Aeris Resources 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).

AIS Cash Flow Statement History

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

30 Jun 202030 Jun 201930 Jun 201830 Jun 2017
Net Income-38.35M-12.67M55.3M-33.3M
Change To Netincome3.22M2.13M-39.63M9M
Change To Account Receivables-10.99M2.53M-2.84M4.13M
Change To Liabilities7.66M4.13M7.92M10.91M
Change To Inventory5.05M52k-1.51M-837k
Change To Operating Activities4.97M7.57M4.98M1.04M
Total Cash From Operating Activities30.24M35.63M50.52M19.07M
Capital Expenditures-20.36M-28.28M-27.28M-33.16M
Other Cashflows From Investing Activities-5.56M-4.54M-2.24M60k
Total Cashflows From Investing Activities-25.89M-32.82M-29.34M-29.67M
Net Borrowings-6.2M-36.46M-7.54M8.88M
Total Cash From Financing Activities27.55M-3.8M-7.54M8.88M
Effect Of Exchange Rate-153k205k205k120k
Change In Cash31.75M-784k13.63M-1.6M
Issuance Of Stock33.75M35.1M35.1M35.1M