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).

AMD 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 Arrow Minerals Limited (AMD), the free cash flow value is -3.62M.

All amounts in AUD

Operating Cash
-1.6M
Capital Expenditure
-2.02M
Free Cash Flow
-3.62M

Arrow Minerals 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).

AMD Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Arrow Minerals Limited (ASX:AMD).

30 Jun 202030 Jun 201930 Jun 201830 Jun 2017
Net Income-6.99M-3.91M-550.63k-887.64k
Depreciation5.52M2.72M1.81M6.96k
Change To Netincome165.71k201.8k-2.11M-66.56k
Change To Account Receivables33.47k124.65k-140.66k-29.36k
Change To Liabilities68.19k-174k106.53k17.93k
Change To Operating Activities-394.36k-169.03k-4k-848
Total Cash From Operating Activities-1.6M-1.21M-890.92k-959.51k
Capital Expenditures-2.02M-3.14M-3.12M-1.55M
Investments457.32k1.21M1.21M1.21M
Total Cashflows From Investing Activities-1.22M-1.76M-1.19M-1.42M
Net Borrowings-165.37k-28.42k-27.53k-4.43k
Other Cashflows From Financing Activities-184.42k-10.58k123.05k-93.61k
Total Cash From Financing Activities3.56M-39.01k5.11M2.43M
Effect Of Exchange Rate-6.39k-6.39k-6.39k-6.39k
Change In Cash732.57k-3.01M3.03M45.73k
Issuance Of Stock3.91M3.91M5.01M2.52M