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).

AME 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 Alto Metals Limited (AME), the free cash flow value is -2.04M.

All amounts in AUD

Operating Cash
-1M
Capital Expenditure
-1.04M
Free Cash Flow
-2.04M

Alto 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).

AME Cash Flow Statement History

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

30 Jun 202030 Jun 201930 Jun 201830 Jun 2017
Net Income-1.39M-1.15M-624.03k-1.48M
Depreciation16.64k16.79k33.95k478.8k
Change To Netincome288.9k288.9k-263.56k311.04k
Change To Account Receivables60.96k77.65k-82.63k-51.77k
Change To Liabilities1.77k181.72k101.26k-22.91k
Change To Operating Activities13.54k13.54k13.54k13.54k
Total Cash From Operating Activities-1M-858.96k-818.27k-761.47k
Capital Expenditures-1.04M-1.26M-2.38M-2.11M
Total Cashflows From Investing Activities-1.04M-1.26M-1.74M-2.11M
Net Borrowings250k300k300k300k
Other Cashflows From Financing Activities-6.84k-183.82k-29.44k-25.73k
Total Cash From Financing Activities843.16k2.59M2.49M2.67M
Change In Cash-1.2M470.8k-72.1k-194.25k
Issuance Of Stock600k2.47M2.52M2.7M