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).

## ARL 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 Ardea Resources Limited (ARL), the free cash flow value is -5.74M.

All amounts in AUD

Operating Cash
-91.01k
Capital Expenditure
-5.65M
Free Cash Flow
-5.74M

Ardea 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).

## ARL Cash Flow Statement History

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

30 Jun 202030 Jun 201930 Jun 201830 Jun 2017
Net Income-2.08M-1.49M-3.81M-641.27k
Depreciation2.34M103.48k41.38k127.75k
Change To Netincome-693.34k437.98k2.45M2.45M
Change To Account Receivables299.32k344.93k-234.36k-269.42k
Change To Liabilities-1.81k-629.51k139.29k198.68k
Change To Operating Activities41.12k-103.39k79.52k11.13k
Total Cash From Operating Activities-91.01k-1.33M-1.34M-573.14k
Capital Expenditures-5.65M-9.89M-9.69M-1.58M
Investments-203.06k-203.06k-203.06k-203.06k
Other Cashflows From Investing Activities1.97M2.97M2.97M2.97M
Total Cashflows From Investing Activities-3.88M-6.92M-9.69M-1.58M
Total Cash From Financing Activities2.79M288.75k27.13M5.83M
Change In Cash-1.18M-7.97M16.09M3.68M
Issuance Of Stock2.79M288.75k27.48M6.13M