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