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).

## ALY 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 Alchemy Resources Limited (ALY), the free cash flow value is -947243.

All amounts in AUD

Operating Cash
-399.09k
Capital Expenditure
-548.15k
Free Cash Flow
-947243

Alchemy 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).

## ALY Cash Flow Statement History

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

30 Jun 202030 Jun 201930 Jun 201830 Jun 2017
Net Income-390.9k-10.28M-528.83k-753.35k
Depreciation13.61k9.9M67.01k328.91k
Change To Netincome37.15k11.29k32.24k21.91k
Change To Account Receivables-33.79k1.8k5.31k-5.99k
Change To Liabilities-9.53k-20.33k-178-2.4k
Change To Operating Activities-15.64k11.29k8.66k4.12k
Total Cash From Operating Activities-399.09k-377.36k-415.79k-406.8k
Capital Expenditures-548.15k-1.13M-838.03k-452.88k
Total Cashflows From Investing Activities-548.15k-1.13M-838.03k-452.88k
Other Cashflows From Financing Activities-34.5k-21.23k-21.23k-72.16k
Total Cash From Financing Activities1.29M1.3M1.3M1.6M
Change In Cash339.51k-208.97k-1.25M741.37k
Issuance Of Stock1.32M1.32M1.32M1.67M