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