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).

AZL 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 Arizona Lithium Limited (AZL), the free cash flow value is -4.94M.

All amounts in AUD

Operating Cash
Capital Expenditure
Free Cash Flow

Arizona Lithium 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).

AZL Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Arizona Lithium Limited (ASX:AZL).

30 Jun 2022 30 Jun 2021 30 Jun 2020 30 Jun 2019
Net Income -4.23M -3.46M -3.49M -12.62M
Change To Netincome -57.97k 250.14k 517.77k 9.89M
Change To Account Receivables -182.64k -41.21k 22.45k 12.85k
Change To Liabilities 12.02k 112.38k 235.62k -2.53k
Change To Operating Activities -410.09k -14.8k 3.15k 5.81k
Total Cash From Operating Activities -4.87M -3.15M -2.71M -2.71M
Capital Expenditures -72.28k -72.28k -72.28k -72.28k
Investments -285.64k -285.64k -33.4k -20k
Total Cashflows From Investing Activities -110.13k -110.13k -33.4k -307.11k
Other Cashflows From Financing Activities -2.23M -220.38k -49.46k -208.16k
Total Cash From Financing Activities 43.01M 7.87M 950.54k 4.65M
Effect Of Exchange Rate 1.17k -2.36k 600 -2.01k
Change In Cash 38.03M 4.72M -1.79M 1.63M
Issuance Of Stock 45.24M 8.09M 1M 4.9M