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).

## AXE 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 Archer Materials Limited (AXE), the free cash flow value is -2.52M.

All amounts in AUD

Operating Cash
-1.5M
Capital Expenditure
-1.01M
Free Cash Flow
-2.52M

Archer Materials 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).

## AXE Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Archer Materials Limited (ASX:AXE).

30 Jun 202030 Jun 201930 Jun 201830 Jun 2017
Net Income-2.82M-1.74M-1.85M-659.86k
Depreciation372.17k152.29k366.87k20.07k
Change To Netincome869.59k199.15k323.94k97.58k
Change To Account Receivables-62.16k-117.12k75.59k-179.37k
Change To Liabilities24.42k-77.69k86.95k-119.06k
Change To Operating Activities111.29k-6.97k64.37k30.17k
Total Cash From Operating Activities-1.5M-1.59M-936.8k-810.48k
Capital Expenditures-1.01M-1.03M-1.62M-1.42M
Total Cashflows From Investing Activities308.35k-849.07k-1.57M-1.42M
Total Cash From Financing Activities8.61M383.91k3.73M1.77M
Change In Cash7.42M-2.05M1.22M-455.09k
Issuance Of Stock8.61M400.71k3.73M1.89M