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
Capital Expenditure
Free Cash Flow

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
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
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