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).

ATC 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 Altech Chemicals Limited (ATC), the free cash flow value is -12.60M.

All amounts in AUD

Operating Cash
-2.54M
Capital Expenditure
-10.06M
Free Cash Flow
-12.60M

Altech Chemicals 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).

ATC Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Altech Chemicals Limited (ASX:ATC).

30 Jun 202030 Jun 201930 Jun 201830 Jun 2017
Net Income-3.52M-6.19M-4.57M-3.79M
Depreciation22.67k31.12k9.69k47.99k
Change To Netincome1.68M2.83M1.15M796.27k
Change To Account Receivables-16.65k-15.23k24.47k677.62k
Change To Liabilities-731.26k101.47k1.03M-193.08k
Change To Operating Activities20.23k77.57k31.8k70.49k
Total Cash From Operating Activities-2.54M-3.16M-2.32M-2.39M
Capital Expenditures-10.06M-20.55M-8.26M-11.64M
Investments-821.02k-821.02k-821.02k-821.02k
Other Cashflows From Investing Activities815.09k73.8k298.49k494.44k
Total Cashflows From Investing Activities-10.07M-24.21M-16.07M-12.04M
Net Borrowings-2.33M-3.16M-3.16M-3.16M
Total Cash From Financing Activities5.17M35.37M17.21M14.25M
Change In Cash-7.43M8.01M-1.17M-186.49k
Issuance Of Stock7.51M35.37M17.22M14.25M