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).

AWJ 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 Auric Mining Limited (AWJ), the free cash flow value is -1.70M.

All amounts in AUD

Operating Cash
-248.97k
Capital Expenditure
-1.45M
Free Cash Flow
-1.70M

Auric Mining 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).

AWJ Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Auric Mining Limited (ASX:AWJ).

31 Dec 202030 Jun 2020
Net Income-530.03k-106.66k
Depreciation274274
Change To Account Receivables-50.76k-50.76k
Change To Liabilities156.48k
Change To Operating Activities175.06k175.06k
Total Cash From Operating Activities-248.97k-67.73k
Capital Expenditures-1.45M-1.45M
Total Cashflows From Investing Activities-1.45M-1.45M
Other Cashflows From Financing Activities-286.73k-286.73k
Total Cash From Financing Activities1.82M75.85k
Change In Cash124.53k8.12k
Issuance Of Stock2.11M9.85k