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