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).

## ARE 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 Argonaut Resources NL (ARE), the free cash flow value is -2.00M.

All amounts in AUD

Operating Cash
-1.47M
Capital Expenditure
-523.95k
Free Cash Flow
-2.00M

Argonaut Resources NL 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).

## ARE Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Argonaut Resources NL (ASX:ARE).

30 Jun 202030 Jun 201930 Jun 201830 Jun 2017
Net Income-1.8M-2.03M-2.59M-2.07M
Depreciation131.48k10.38k1.74k483
Change To Netincome232.47k93.38k865.54k1.04M
Change To Account Receivables23.42k-3.21k-33.41k-14.05k
Change To Liabilities-59.52k316.45k-114.09k149.95k
Total Cash From Operating Activities-1.47M-1.62M-1.87M-889.58k
Capital Expenditures-523.95k-1.68M-842.25k-1.34M
Total Cashflows From Investing Activities-523.95k-1.68M-842.25k-921.06k
Other Cashflows From Financing Activities-147.16k-147.16k-556.8k-4.62k
Total Cash From Financing Activities1.13M1.13M7.99M557.02k
Change In Cash-864.14k-3.3M5.27M-1.25M
Issuance Of Stock1.28M1.28M8.54M561.64k