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).

## ALK 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 Alkane Resources Limited (ALK), the free cash flow value is -38.17M.

All amounts in AUD

Operating Cash
28.54M
Capital Expenditure
-66.71M
Free Cash Flow
-38.17M

Alkane 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).

## ALK Cash Flow Statement History

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

30 Jun 202030 Jun 201930 Jun 201830 Jun 2017
Net Income12.76M23.29M24.47M-28.94M
Depreciation9.56M7.91M38.47M70.15M
Change To Netincome3.38M-279k1.55M13.02M
Change To Account Receivables-749k287k194k-577k
Change To Liabilities6.46M6.86M-8.72M-4.41M
Change To Inventory-3.13M14.39M-9.32M2M
Change To Operating Activities259k-9.32M1.05M3.5M
Total Cash From Operating Activities28.54M36.22M54.53M54.75M
Capital Expenditures-66.71M-31.39M-20.4M-43.7M
Investments-8.97M-7.62M-7.62M-7.62M
Other Cashflows From Investing Activities-1.74M-70k-4.11M2.96M
Total Cashflows From Investing Activities-77.3M-38.64M-24.51M-40.69M
Net Borrowings6.62M6.62M16k-16k
Other Cashflows From Financing Activities-1.22M-1.22M-5k-670k
Total Cash From Financing Activities46.06M46.06M11k3.46M
Change In Cash-2.7M-2.42M30.03M17.51M
Issuance Of Stock40.66M40.66M40.66M4.14M