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).

AUL 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 AuStar Gold Limited (AUL), the free cash flow value is -2.09M.

All amounts in AUD

Operating Cash
-1.85M
Capital Expenditure
-234.04k
Free Cash Flow
-2.09M

AuStar Gold 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).

AUL Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for AuStar Gold Limited (ASX:AUL).

30 Jun 202030 Jun 201930 Jun 201830 Jun 2017
Net Income-1.51M-13.54M-695.25k-7.64M
Depreciation66.1k8.39M-719.2k5.85M
Change To Netincome82.09k1.83M164.85k684.94k
Change To Account Receivables116.33k19.85k-18.4k906.18k
Change To Liabilities-94.75k811.7k913.37k-178.2k
Change To Inventory-517.43k218.31k218.31k218.31k
Change To Operating Activities2.83k-279.8k9005.46k
Total Cash From Operating Activities-1.85M-2.55M-353.73k-372.32k
Capital Expenditures-234.04k-3.06M-3.44M-1.48M
Total Cashflows From Investing Activities-221.52k-3.06M-3.51M-3.57M
Net Borrowings1.69M27.05k139.67k6.88k
Total Cash From Financing Activities1.69M5.51M4.13M3.03M
Change In Cash-387.89k-93.51k262.73k-918.38k