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).

AW1 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 American West Metals Limited (AW1), the free cash flow value is -3.00M.

All amounts in AUD

Operating Cash
-3M
Capital Expenditure
-
Free Cash Flow
-3.00M

American West Metals 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).

AW1 Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for American West Metals Limited (ASX:AW1).

30 Jun 2021
Net Income-3.12M
Change To Netincome27.77k
Change To Account Receivables-20.52k
Change To Liabilities150.71k
Change To Operating Activities-42.05k
Total Cash From Operating Activities-3M
Net Borrowings94.29k
Other Cashflows From Financing Activities-2.06k
Total Cash From Financing Activities4.88M
Effect Of Exchange Rate-6.36k
Change In Cash1.88M
Issuance Of Stock4.79M