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).

AZI 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 Alta Zinc Limited (AZI), the free cash flow value is -3.54M.

All amounts in AUD

Operating Cash
-3.52M
Capital Expenditure
-14.19k
Free Cash Flow
-3.54M

Alta Zinc 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).

AZI Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Alta Zinc Limited (ASX:AZI).

30 Jun 202030 Jun 201930 Jun 201830 Jun 2017
Net Income-3.76M-3.27M-3.63M-10.72M
Depreciation122.63k31.77k84.21k49.15k
Change To Netincome76.21k-281.83k-145.43k917.93k
Change To Account Receivables-86.17k1.36M251.38k-733.1k
Change To Liabilities80.92k38.53k-630.34k-486.41k
Change To Operating Activities42.83k68.28k-80.85k55.29k
Total Cash From Operating Activities-3.52M-2.05M-4.15M-10.91M
Capital Expenditures-14.19k-6.86k-9.47k-26.06k
Total Cashflows From Investing Activities-14.19k5.67k72.06k3.45M
Net Borrowings-99.11k-99.11k-64.65k-105.39k
Other Cashflows From Financing Activities-268.4k-40.28k-261.13k-308.4k
Total Cash From Financing Activities3.7M1.77M5.81M5.68M
Effect Of Exchange Rate4.56k4.56k-6.75k-63.67k
Change In Cash166.95k-275.53k1.72M-1.85M
Issuance Of Stock4.07M1.81M6.13M6.09M