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).

## AL8 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 Alderan Resources Limited (AL8), the free cash flow value is -1.80M.

All amounts in AUD

Operating Cash
-1.38M
Capital Expenditure
-411.75k
Free Cash Flow
-1.80M

Alderan 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).

## AL8 Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Alderan Resources Limited (ASX:AL8).

30 Jun 202030 Jun 201930 Jun 201830 Jun 2017
Net Income-1.7M-4.17M-6.71M-1.57M
Depreciation86.12k117.23k108.13k530.77k
Change To Netincome214.78k1.64M2.77M560.83k
Change To Account Receivables767-14.38k50.13k-127.52k
Change To Liabilities15.99k-171.03k704.28k173.62k
Total Cash From Operating Activities-1.38M-2.6M-8.28M-1.44M
Capital Expenditures-411.75k-2.37M-575.38k-22.54k
Other Cashflows From Investing Activities-10k-10k-10k-10k
Total Cashflows From Investing Activities-421.75k-2.33M-575.38k-37.26k
Total Cash From Financing Activities3.19M4.1M2.82M9.12M
Effect Of Exchange Rate2.75k-82.49k17.57k8.69k
Change In Cash1.38M-916.2k-6.02M7.65M
Issuance Of Stock3.19M4.43M3M9.02M