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).

ARO 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 Astro Resources NL (ARO), the free cash flow value is -1.14M.

All amounts in AUD

Operating Cash
-197.76k
Capital Expenditure
-939.5k
Free Cash Flow
-1.14M

Astro 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).

ARO Cash Flow Statement History

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

30 Jun 202030 Jun 201930 Jun 201830 Jun 2017
Net Income-700.58k-710.72k-963.69k-600.29k
Depreciation9.71k268.63k507.57k13.2k
Change To Netincome334.87k158.98k158.98k158.98k
Change To Account Receivables29.77k17k-32.86k2.06k
Change To Liabilities128.47k41.57k218.63k-298.1k
Total Cash From Operating Activities-197.76k-269.64k-532.83k-723.34k
Capital Expenditures-939.5k-688.25k-399.68k-233.54k
Total Cashflows From Investing Activities-939.5k-688.25k-399.68k-233.54k
Net Borrowings965k277.79k920k920k
Total Cash From Financing Activities965k1.15M931k942.85k
Change In Cash-172.26k5.66k-1.5k-14.04k