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).

ALM 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 Alma Metals Limited (ALM), the free cash flow value is -597518.

All amounts in USD

Operating Cash
-597.52k
Capital Expenditure
-
Free Cash Flow
-597518

Alma Metals 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).

ALM Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Alma Metals Limited (ASX:ALM).

30 Jun 202130 Jun 202030 Jun 201930 Jun 2018
Net Income-4.05M-3.37M-927.79k-4.01M
Change To Netincome3.44M480.9k392.59k-292.57k
Change To Account Receivables19.27k29.22k-14.23k101.53k
Change To Liabilities-2.98k-67.79k16.65k-27.53k
Total Cash From Operating Activities-597.52k-430.65k-532.75k-834.51k
Investments603.74k-447.29k347.95k-371.37k
Total Cashflows From Investing Activities603.74k-447.29k347.95k-371.37k
Effect Of Exchange Rate89.92k-50.79k-173.71k-140.72k
Change In Cash96.14k-928.72k-358.5k-321.54k