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).

ALC 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 Alcidion Group Limited (ALC), the free cash flow value is -2.14M.

All amounts in AUD

Operating Cash
-2.02M
Capital Expenditure
-123.82k
Free Cash Flow
-2.14M

Alcidion Group 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).

ALC Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Alcidion Group Limited (ASX:ALC).

30 Jun 202030 Jun 201930 Jun 201830 Jun 2017
Net Income-3.08M-84.17k-2.09M-2.06M
Depreciation224.06k65.89k47.22k55.28k
Change To Netincome-1.22k-1.22k-1.22k684k
Change To Account Receivables-410.46k-1.89M-306.17k883.56k
Change To Liabilities-478.29k772.13k128.6k-1.97k
Change To Operating Activities1.73M3.13M394.36k-79.31k
Total Cash From Operating Activities-2.02M1.99M-1.83M-519.42k
Capital Expenditures-123.82k-264.78k-23.86k-14.57k
Total Cashflows From Investing Activities-362.04k-1.74M-615.62k-14.57k
Net Borrowings-206.83k31.35k31.35k-5.1k
Total Cash From Financing Activities15.16M31.35k31.35k219.9k
Change In Cash12.78M281.5k-2.44M-314.09k
Issuance Of Stock15.36M15.36M15.36M225k