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 Ltd (ATP), the free cash flow value is -2.24M.

All amounts in AUD

Operating Cash
-1.29M
Capital Expenditure
-946.33k
Free Cash Flow
-2.24M

Atlas Pearls Ltd 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).

ATP Cash Flow Statement History

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

30 Jun 202030 Jun 201930 Jun 201830 Jun 2017
Net Income-8.08M-3.58M-2.03M900.58k
Depreciation626.01k297.25k255.6k470.03k
Change To Netincome8.38M3.35M961.52k-69.81k
Change To Account Receivables1.73M149.77k-29.55k-130.37k
Change To Liabilities-210.46k420.9k-188.88k53.22k
Change To Inventory-2.29M1.34M950.45k-340.22k
Change To Operating Activities241.31k408.71k37.6k50.04k
Total Cash From Operating Activities-1.29M763.85k-701.08k-70.08k
Capital Expenditures-946.33k-1.14M-675.79k-1.31M
Investments1.5M1.5M1.5M-221.75k
Total Cashflows From Investing Activities424.35k-1.34M-675.79k-1.53M
Net Borrowings92.02k-672.85k427.79k-490.9k
Total Cash From Financing Activities92.02k-672.85k427.79k-490.9k
Effect Of Exchange Rate477.77k989.31k42.99k-68.53k
Change In Cash-298.92k-261.65k-906.1k-2.16M