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).

## ATU 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 Atrum Coal Limited (ATU), the free cash flow value is -24.00M.

All amounts in AUD

Operating Cash
-23.9M
Capital Expenditure
-101.72k
Free Cash Flow
-24.00M

Atrum Coal 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).

## ATU Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Atrum Coal Limited (ASX:ATU).

31 Dec 202031 Dec 201931 Dec 201831 Dec 2017
Net Income-25.77M-23.01M-4.66M-740.14k
Change To Netincome3.26M3.59M-120.81k996.37k
Change To Account Receivables-79.72k-430.69k-25.22k129.02k
Change To Liabilities-1.31M2.46M71.23k-1.1M
Total Cash From Operating Activities-23.9M-12.68M-3.5M-114.22k
Capital Expenditures-101.72k-109.75k-3.13M-203.57k
Total Cashflows From Investing Activities-101.72k-109.75k-3.12M-203.57k
Other Cashflows From Financing Activities-1.12M-516.21k-702.8k-563.16k
Total Cash From Financing Activities21.83M19.74M7.71M-4.24M
Effect Of Exchange Rate131.45k67.9k-7.05k-189.8k
Change In Cash-2.04M7.02M1.08M-4.74M
Issuance Of Stock22.95M20.4M9.6M9.6M