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).

AKE 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 Allkem Limited (AKE), the free cash flow value is -113.31M.

All amounts in USD

Operating Cash
-15.7M
Capital Expenditure
-97.61M
Free Cash Flow
-113.31M

Allkem 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).

AKE Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Allkem Limited (ASX:AKE).

30 Jun 202130 Jun 202030 Jun 201930 Jun 2018
Net Income-59.62M-51.99M54.62M1.92M
Depreciation18.91M17.33M8.19M1.88M
Change To Netincome50.34M104k-51.61M-14.6M
Change To Account Receivables-7.14M877k1.76M-3.34M
Change To Liabilities5.02M8.83M-442k432k
Change To Inventory-24.43M7.81M-747k-336k
Change To Operating Activities1.01M6.43M-3.29M66k
Total Cash From Operating Activities-15.7M-10.43M8.49M-13.97M
Capital Expenditures-97.61M-136.94M-41.56M-8.11M
Investments815k-1.18M-10.61M-8.27M
Total Cashflows From Investing Activities-94.35M-137.2M-21.3M-13.05M
Net Borrowings79.6M38.94M-2.95M-217k
Total Cash From Financing Activities198.95M39.08M-23.6M292.23M
Effect Of Exchange Rate-2.42M595k-471k-146k
Change In Cash86.48M-107.96M-36.88M265.05M
Issuance Of Stock119.35M136k352k287.01M