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 -5.09M.

All amounts in AUD

Operating Cash
-3.68M
Capital Expenditure
-1.41M
Free Cash Flow
-5.09M

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 202030 Jun 201930 Jun 201830 Jun 2017
Net Income-5.44M-6.04M-6.64M-4.88M
Depreciation1.43M133.16k2.66M2.02M
Change To Netincome208.35k37.06k1.3M406.45k
Change To Account Receivables-289.74k358.22k-629.54k174.22k
Change To Liabilities315.44k-603.14k-417.76k834.15k
Total Cash From Operating Activities-3.68M-6.08M-3.73M-1.45M
Capital Expenditures-1.41M-1.9M-1.18M-1.9M
Other Cashflows From Investing Activities-198.22k-364.6k-101.24k167.58k
Total Cashflows From Investing Activities-1.61M-2.27M-1.28M-1.74M
Net Borrowings-14.99k-13.32k-629.83k2.85M
Other Cashflows From Financing Activities-1.16M-684.22k-282.88k-2.34k
Total Cash From Financing Activities35.11M11.98M12.09M3.19M
Effect Of Exchange Rate-253.12k12.81k-3.06k-5.71k
Change In Cash29.58M3.65M7.08M-6.44k
Issuance Of Stock36.28M12.68M13.01M337.4k