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).

WSA 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 Western Areas Limited (WSA), the free cash flow value is -83.59M.

All amounts in AUD

Operating Cash
Capital Expenditure
Free Cash Flow

Western Areas 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).

WSA Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Western Areas Limited (ASX:WSA).

30 Jun 202130 Jun 202030 Jun 201930 Jun 2018
Net Income-7.71M31.87M14.19M11.84M
Change To Netincome4.31M5.61M2.85M7.19M
Change To Account Receivables-2.93M3.2M2.25M-9.22M
Change To Liabilities-1.15M-602k1.33M10M
Change To Inventory-6.04M-7.92M12.32M-13.52M
Change To Operating Activities323k-101k212k-131k
Total Cash From Operating Activities59.72M120.36M98.3M76.97M
Capital Expenditures-143.3M-115.36M-99.3M-59.78M
Total Cashflows From Investing Activities-143.79M-110.93M-99.84M-59.78M
Dividends Paid-2.1M-7.74M-5.47M-5.46M
Net Borrowings-5.88M-1.17M-321k-282k
Other Cashflows From Financing Activities-1.69M-1.69M-50k-100k
Total Cash From Financing Activities90.34M-8.9M-5.84M-5.84M
Change In Cash6.26M531k-7.38M11.35M
Issuance Of Stock100M100M100M100M