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