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).

ATP 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 Atlas Pearls Limited (ATP), the free cash flow value is 2.52M.

All amounts in AUD

Operating Cash
3.77M
Capital Expenditure
-1.25M
Free Cash Flow
2.52M

Atlas Pearls Limited has a positive 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).

ATP Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Atlas Pearls Limited (ASX:ATP).

30 Jun 202130 Jun 202030 Jun 201930 Jun 2018
Net Income6.72M-8.08M-3.58M-2.03M
Depreciation473.17k626.01k297.25k255.6k
Change To Netincome-2.94M8.38M3.35M961.52k
Change To Account Receivables-64.56k1.73M149.77k-29.55k
Change To Liabilities-322.96k-210.46k420.9k-188.88k
Change To Inventory633.66k-2.29M1.34M950.45k
Change To Operating Activities323.29k241.31k408.71k37.6k
Total Cash From Operating Activities3.77M-1.29M763.85k-701.08k
Capital Expenditures-1.25M-946.33k-1.14M-675.79k
Total Cashflows From Investing Activities-1.25M424.35k-1.34M-675.79k
Net Borrowings-544.64k92.02k-672.85k427.79k
Total Cash From Financing Activities-544.64k92.02k-672.85k427.79k
Effect Of Exchange Rate327.22k477.77k989.31k42.99k
Change In Cash2.3M-298.92k-261.65k-906.1k