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
Capital Expenditure
Free Cash Flow

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