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).

## AKM 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 Aspire Mining Limited (AKM), the free cash flow value is -4.67M.

All amounts in AUD

Operating Cash
-1.95M
Capital Expenditure
-2.72M
Free Cash Flow
-4.67M

Aspire Mining 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).

## AKM Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Aspire Mining Limited (ASX:AKM).

30 Jun 2022 30 Jun 2021 30 Jun 2020 30 Jun 2019
Net Income 428.43k -5.17M -5.44M -6.04M
Depreciation 104.56k 163.67k 1.43M 133.16k
Change To Netincome -2.72M 3M 208.35k 37.06k
Change To Account Receivables -60.45k 260.12k -289.74k 358.22k
Change To Liabilities 195.72k 4.67k 315.44k -603.14k
Total Cash From Operating Activities -1.95M -1.66M -3.68M -6.08M
Capital Expenditures -2.72M -874.18k -1.41M -1.9M
Other Cashflows From Investing Activities -187.7k -315.35k -198.22k -364.6k
Total Cashflows From Investing Activities -2.9M -1.19M -1.61M -2.27M
Net Borrowings -53.49k -17k -14.99k -13.32k
Total Cash From Financing Activities -53.49k -17k 35.11M 11.98M
Effect Of Exchange Rate 2.73M -3.67M -253.12k 12.81k
Change In Cash -2.18M -6.54M 29.58M 3.65M