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