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).

ARA 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 Ariadne Australia Limited (ARA), the free cash flow value is 7.29M.

All amounts in AUD

Operating Cash
7.29M
Capital Expenditure
-4k
Free Cash Flow
7.29M

Ariadne Australia Limited has a positive 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).

ARA Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Ariadne Australia Limited (ASX:ARA).

30 Jun 202030 Jun 201930 Jun 201830 Jun 2017
Net Income-7.14M-2.91M15.29M78.99M
Depreciation8.2M242k245k163k
Change To Netincome6.62M23.08M-12.61M-62.16M
Change To Account Receivables-1.07M303k-671k2k
Change To Liabilities395k-905k-302k301k
Change To Operating Activities112k-81k213k-94k
Total Cash From Operating Activities7.29M21.3M559k9.52M
Capital Expenditures-4k-23k-4k-1.18M
Investments-2M6.98M-16.25M-47.63M
Total Cashflows From Investing Activities-4.29M6.39M-17.48M26.15M
Dividends Paid-1.97M-3.38M-4.01M-3.02M
Net Borrowings-7.32M-2.74M-134k3.74M
Other Cashflows From Financing Activities-374k-697k-996k-1.49M
Total Cash From Financing Activities-10.07M-8.73M-9.39M-1.72M
Change In Cash-7.07M18.96M-26.32M33.95M
Repurchase Of Stock-402k-1.92M-1.29M-1.29M