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).

## AUQ 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 Alara Resources Limited (AUQ), the free cash flow value is -5.31M.

All amounts in AUD

Operating Cash
-2.12M
Capital Expenditure
-3.2M
Free Cash Flow
-5.31M

Alara Resources 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).

## AUQ Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Alara Resources Limited (ASX:AUQ).

30 Jun 202030 Jun 201930 Jun 201830 Jun 2017
Net Income273.99k-454.58k-691.51k-258.53k
Depreciation9.57k10.12k11.37k15.56k
Change To Netincome-592.49k-226.58k383.17k-226.5k
Change To Account Receivables3.09k-74.93k59.4k245.96k
Change To Liabilities-292.96k100.88k1.58M-254.04k
Change To Operating Activities-1.52M-131.47k-44.3k-79.16k
Total Cash From Operating Activities-2.12M-776.56k1.29M-556.7k
Capital Expenditures-3.2M-1.41M-1.14M-812.72k
Investments5.27M6.55M6.55M6.55M
Total Cashflows From Investing Activities2.27M5.14M-1.14M-812.72k
Other Cashflows From Financing Activities-421.58k-157.16k-7.59k-145.49k
Total Cash From Financing Activities-188.66k-157.16k1.3M1.9M
Effect Of Exchange Rate144.09k10.84k11.15k-11.22k
Change In Cash112.21k4.22M1.46M519.87k
Issuance Of Stock232.92k232.92k945k1.83M