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).

AKO 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 Akora Resources Limited (AKO), the free cash flow value is -1.97M.

All amounts in AUD

Operating Cash
-1.18M
Capital Expenditure
-788.33k
Free Cash Flow
-1.97M

Akora Resources 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).

AKO Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Akora Resources Limited (ASX:AKO).

31 Dec 202031 Dec 201931 Dec 2018
Net Income-1.46M-945.98k-350.79k
Depreciation4.8k4.8k4.8k
Change To Netincome762.25k152.05k152.12k
Change To Account Receivables-17.11k-8.68k-1.81k
Change To Liabilities-471.52k543.67k-71.99k
Total Cash From Operating Activities-1.18M-258.9k-249.85k
Capital Expenditures-788.33k-213.39k-81.62k
Total Cashflows From Investing Activities-788.33k-466.87k-75.61k
Other Cashflows From Financing Activities-352.5k-49.78k-49.78k
Total Cash From Financing Activities4.78M2.78M8.7k
Effect Of Exchange Rate-134.66k-48.52k-48.52k
Change In Cash2.68M2.01M-316.75k
Issuance Of Stock5.13M2.73M8.7k