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).

ARD 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 Argent Minerals Limited (ARD), the free cash flow value is -1.72M.

All amounts in AUD

Operating Cash
-1.72M
Capital Expenditure
-
Free Cash Flow
-1.72M

Argent 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).

ARD Cash Flow Statement History

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

30 Jun 202030 Jun 201930 Jun 201830 Jun 2017
Net Income-2.19M-3.54M-1.71M-2.12M
Depreciation50.08k45.48k47.33k39.26k
Change To Netincome208.41k37.47k129.5k214.21k
Change To Account Receivables23.62k-19.2k17.61k-17.61k
Change To Liabilities153.82k-10.82k39.2k29.75k
Change To Operating Activities32.78k1.4M-3.73k-1.64k
Total Cash From Operating Activities-1.72M-2.09M-1.48M-1.86M
Other Cashflows From Investing Activities127.1k-10k11.9k-28k
Total Cashflows From Investing Activities88.1k-20.31k-12.97k-79.65k
Net Borrowings-6.5k-6.5k-6.5k-6.5k
Other Cashflows From Financing Activities-185.86k-80.98k-84.15k-358.48k
Total Cash From Financing Activities2.86M1.19M1.12M3.32M
Change In Cash1.23M-923.53k-379.54k1.38M
Issuance Of Stock3.05M1.27M1.2M3.67M