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