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).

AKN 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 AuKing Mining Limited (AKN), the free cash flow value is -333505.

All amounts in AUD

Operating Cash
-333.5k
Capital Expenditure
-
Free Cash Flow
-333505

AuKing 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).

AKN Cash Flow Statement History

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

31 Dec 202031 Dec 201931 Dec 201831 Dec 2017
Net Income-1.43M-1.14M-1.25M-2.24M
Depreciation1.04k1.88k5.87k19.48k
Change To Netincome355.45k199.67k98.67k982.46k
Change To Account Receivables-5.29k41.38k-35.65k5.84k
Change To Liabilities734.33k207.94k116.9k-17.53k
Change To Operating Activities7.97k31.58k16.53k17.89k
Total Cash From Operating Activities-333.5k-660.11k-1.05M-1.23M
Other Cashflows From Investing Activities-100k-100k9.14k4.07k
Total Cashflows From Investing Activities-100k51.48k6.01k-741.84k
Net Borrowings358k625k750k250k
Total Cash From Financing Activities358k625k750k250k
Change In Cash-75.5k16.37k-290.04k-1.72M