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