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).

ARV 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 Artemis Resources Limited (ARV), the free cash flow value is -5.09M.

All amounts in AUD

Operating Cash
-2.09M
Capital Expenditure
-3M
Free Cash Flow
-5.09M

Artemis 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).

ARV Cash Flow Statement History

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

30 Jun 202030 Jun 201930 Jun 201830 Jun 2017
Net Income-12.27M-9.35M12.07M-2.18M
Depreciation9.46M707.84k205.22k2k
Change To Netincome-598.47k4.24M-16.11M1.56M
Change To Account Receivables84.12k169k-288.41k-515.02k
Change To Liabilities743.52k57.86k671.72k136.77k
Change To Inventory460.2k-460.2k-460.2k-460.2k
Total Cash From Operating Activities-2.09M-4.59M-3.44M-995.3k
Capital Expenditures-3M-24.08M-19.17M-4.1M
Investments820k208.88k19.52M162.24k
Total Cashflows From Investing Activities-2.18M-23.86M-1.15M-3.94M
Net Borrowings-5.49M1.8M3.97M2.75M
Other Cashflows From Financing Activities-529.63k-529.63k-1.26M-64.82k
Total Cash From Financing Activities3.86M2M31.08M5.25M
Effect Of Exchange Rate1.09k222.88k226.3k226.3k
Change In Cash-409.34k-26.23M26.72M311.05k
Issuance Of Stock9.88M202.49k28.37M2.57M