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 -17.34M.

All amounts in AUD

Operating Cash
-17.33M
Capital Expenditure
-10.47k
Free Cash Flow
-17.34M

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 202130 Jun 202030 Jun 201930 Jun 2018
Net Income-15.31M-13.46M-12.34M-8.27M
Depreciation75.37k112.43k29.7k21.8k
Change To Netincome2.31M-274.99k-314.74k1.04M
Change To Account Receivables-4.22M4.77M-1.68M-116.84k
Change To Liabilities432.9k-648.57k662.93k1.16M
Change To Operating Activities-624.03k68.64k-317.78k-89.88k
Total Cash From Operating Activities-17.33M-9.43M-13.95M-6.25M
Capital Expenditures-10.47k-16.74k-7.02k-62.41k
Total Cashflows From Investing Activities-10.47k-16.74k-7.02k-18.42k
Net Borrowings-58.29k-89.24k-89.24k-89.24k
Other Cashflows From Financing Activities-2.49M-292.77k-362.32k-107.68k
Total Cash From Financing Activities36.69M3.98M12.72M-107.68k
Effect Of Exchange Rate-426.78k262.98k403.88k-278.12k
Change In Cash18.92M-5.2M-835.65k-6.65M
Issuance Of Stock39.24M4.36M13.08M13.08M