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).

## ARN 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 Aldoro Resources Limited (ARN), the free cash flow value is -1.95M.

All amounts in AUD

Operating Cash
-1.07M
Capital Expenditure
-877.51k
Free Cash Flow
-1.95M

Aldoro 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).

## ARN Cash Flow Statement History

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

30 Jun 202030 Jun 201930 Jun 2018
Net Income-1.86M-391.35k-300.8k
Depreciation810.25k810.25k810.25k
Change To Netincome247k247k247k
Change To Account Receivables3.78k-17.29k-150.37k
Change To Liabilities-272.07k-188.95k434.8k
Total Cash From Operating Activities-1.07M-597.59k-16.37k
Capital Expenditures-877.51k-623.31k-136.2k
Total Cashflows From Investing Activities-873.29k-623.31k-136.2k
Other Cashflows From Financing Activities-50.23k-432.95k-432.95k
Total Cash From Financing Activities599.77k4.57M505.72k
Change In Cash-1.35M3.35M353.14k
Issuance Of Stock650k5M505.72k