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