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).

## AOA 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 Ausmon Resources Limited (AOA), the free cash flow value is -1.08M.

All amounts in AUD

Operating Cash
-360.65k
Capital Expenditure
-717.03k
Free Cash Flow
-1.08M

Ausmon 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).

## AOA Cash Flow Statement History

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

30 Jun 202130 Jun 202030 Jun 201930 Jun 2018
Net Income-582.6k-1.1M-370.37k-591.74k
Depreciation8.56k797.26k797.26k27.22k
Change To Netincome161.1k161.1k102k107k
Change To Account Receivables-27.2k5.69k14.98k-14.9k
Change To Liabilities78.25k-53967.97k6.78k
Change To Operating Activities1.24k-701-3.45k588
Total Cash From Operating Activities-360.65k-302.2k-188.87k-465.05k
Capital Expenditures-717.03k-121k-202.84k-66.95k
Other Cashflows From Investing Activities-10k-10k2.5k-20k
Total Cashflows From Investing Activities-727.03k-121k-200.34k-86.95k
Net Borrowings125k125k125k125k
Other Cashflows From Financing Activities-55.95k-8.34k-8.34k-59.3k
Total Cash From Financing Activities752.45k199.16k199.16k988.7k
Change In Cash-335.23k-224.04k-389.21k436.7k
Issuance Of Stock683.4k207.5k207.5k1.05M