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