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).

## GOR 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 Gold Road Resources Limited (GOR), the free cash flow value is 97.62M.

All amounts in AUD

Operating Cash
142.69M
Capital Expenditure
-45.08M
Free Cash Flow
97.62M

Gold Road Resources Limited has a positive 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).

## GOR Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Gold Road Resources Limited (ASX:GOR).

31 Dec 202031 Dec 201931 Dec 201831 Dec 2017
Net Income80.82M-4.66M-23.85M-15.5M
Depreciation51.43M13.21M965k602k
Change To Netincome-18.03M10.72M8.29M-360k
Change To Account Receivables14k-15k1.32M904k
Change To Liabilities28.27M18.32M-8.62M-5.65M
Change To Inventory-5.08M-2.67M-2.67M-2.67M
Change To Operating Activities-1.85M-1.23M746k230k
Total Cash From Operating Activities142.69M34.04M-21.16M-20.56M
Capital Expenditures-45.08M-45.99M-186.61M-103M
Investments18.07M-50k14.45M274.76M
Total Cashflows From Investing Activities-26.98M-46.35M-172.11M190.97M
Net Borrowings-89.2M69.68M3M3M
Other Cashflows From Financing Activities-1.46M-1.46M-2.58M-2.58M
Total Cash From Financing Activities-90.65M69.68M424k560k
Change In Cash25.05M57.38M-192.84M170.97M