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).

AX8 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 Accelerate Resources Limited (AX8), the free cash flow value is -1.01M.

All amounts in AUD

Operating Cash
-673.32k
Capital Expenditure
-341.25k
Free Cash Flow
-1.01M

Accelerate 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).

AX8 Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Accelerate Resources Limited (ASX:AX8).

30 Jun 202030 Jun 201930 Jun 201830 Jun 2017
Net Income-1.51M-1.72M-867.75k-1.09M
Depreciation594.9k666.78k224224
Change To Netincome141.55k6.61k320k985.22k
Change To Liabilities66.53k-287.93k90.4k82.16k
Change To Operating Activities29.55k28.03k-1.06M-147.82k
Total Cash From Operating Activities-673.32k-1.3M-1.52M-175.07k
Capital Expenditures-341.25k-1.45M-12.81k-12.81k
Total Cashflows From Investing Activities-136.58k-1.45M-12.81k-12.81k
Net Borrowings-21.16k-21.16k-21.16k-21.16k
Other Cashflows From Financing Activities-54.09k-54.09k-421.32k-29.06k
Total Cash From Financing Activities283.27k283.27k4.83M576.94k
Change In Cash-526.62k-2.75M3.3M401.87k
Issuance Of Stock358.52k358.52k5.25M606k