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).

AS2 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 Askari Metals Limited (AS2), the free cash flow value is -428565.

All amounts in AUD

Operating Cash
Capital Expenditure
Free Cash Flow

Askari Metals 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).

AS2 Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Askari Metals Limited (ASX:AS2).

30 Jun 202131 Mar 2021
Net Income-635.21k-46.35k
Change To Account Receivables-167.79k-167.79k
Change To Liabilities399.37k
Total Cash From Operating Activities-250.33k-43.36k
Capital Expenditures-178.23k-67.91k
Other Cashflows From Investing Activities-17.14k-17.14k
Total Cashflows From Investing Activities-197.11k-67.91k
Net Borrowings40.71k40.71k
Other Cashflows From Financing Activities-25.71k-25.71k
Total Cash From Financing Activities10.4M325.95k
Change In Cash9.95M214.68k
Issuance Of Stock10.38M325.95k