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 -6.39M.

All amounts in AUD

Operating Cash
-1.85M
Capital Expenditure
-4.54M
Free Cash Flow
-6.39M

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 2021 31 Dec 2020 31 Dec 2019 31 Dec 2018
Net Income -1.76M -1.43M -1.14M -1.25M
Depreciation 13.67k 1.04k 1.88k 5.87k
Change To Netincome -24.38k 355.45k 199.67k 98.67k
Change To Account Receivables -216.57k -5.29k 41.38k -35.65k
Change To Liabilities 143.49k 734.33k 207.94k 116.9k
Change To Operating Activities 38 7.97k 31.58k 16.53k
Total Cash From Operating Activities -1.85M -333.5k -660.11k -1.05M
Capital Expenditures -4.54M -4.54M -4.54M -3.12k
Total Cashflows From Investing Activities -4.54M -100k 51.48k 6.01k
Net Borrowings 600k 358k 625k 750k
Other Cashflows From Financing Activities -1.2M -1.2M -1.2M -1.2M
Total Cash From Financing Activities 8.87M 358k 625k 750k
Change In Cash 2.48M -75.5k 16.37k -290.04k
Issuance Of Stock 9.47M 9.47M 9.47M 9.47M