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).

## AUC 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 Ausgold Limited (AUC), the free cash flow value is -3.37M.

All amounts in AUD

Operating Cash
-866.6k
Capital Expenditure
-2.51M
Free Cash Flow
-3.37M

Ausgold 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).

## AUC Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Ausgold Limited (ASX:AUC).

30 Jun 202030 Jun 201930 Jun 201830 Jun 2017
Net Income-1.82M-1.78M-1.14M-2.67M
Depreciation765.69k545.91k61.48k1.12M
Change To Netincome274.51k228.87k164.2k634.63k
Change To Account Receivables-2.11k7.84k-5.63k-6.1k
Change To Liabilities-9.37k-38.87k-140.81k214.98k
Change To Operating Activities-71.98k155.2k24.38k7.83k
Total Cash From Operating Activities-866.6k-882.46k-1.03M-704.89k
Capital Expenditures-2.51M-2.63M-3.64M-1.89M
Total Cashflows From Investing Activities-2.51M-2.63M-3.64M-1.96M
Net Borrowings-113.13k-19.52k-19.52k-19.52k
Other Cashflows From Financing Activities-228.85k-186.14k-32.16k-155.19k
Total Cash From Financing Activities4.1M1.59M6.29M3.15M
Change In Cash727.32k-1.92M1.61M482.21k
Issuance Of Stock4.44M1.8M6.32M3.3M