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).

ATH 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 Alterity Therapeutics Limited (ATH), the free cash flow value is -12.43M.

All amounts in AUD

Operating Cash
Capital Expenditure
Free Cash Flow

Alterity Therapeutics 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).

ATH Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Alterity Therapeutics Limited (ASX:ATH).

30 Jun 202230 Jun 202130 Jun 202030 Jun 2019
Net Income-12.85M-15.31M-13.46M-12.34M
Change To Netincome-1.31M2.31M-274.99k-314.74k
Change To Account Receivables-447.68k-4.22M4.77M-1.68M
Change To Liabilities2.6M432.9k-648.57k662.93k
Change To Operating Activities-393.29k-624.03k68.64k-317.78k
Total Cash From Operating Activities-12.34M-17.33M-9.43M-13.95M
Capital Expenditures-89.15k-10.47k-16.74k-7.02k
Total Cashflows From Investing Activities-89.15k-10.47k-16.74k-7.02k
Net Borrowings-34.51k-58.29k-89.24k-89.24k
Other Cashflows From Financing Activities-836.97k-2.49M-292.77k-362.32k
Total Cash From Financing Activities16.3M36.69M3.98M12.72M
Effect Of Exchange Rate2.81M-426.78k262.98k403.88k
Change In Cash6.69M18.92M-5.2M-835.65k
Issuance Of Stock17.18M39.24M4.36M13.08M