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