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
59.72M
Capital Expenditure
-143.3M
Free Cash Flow
-83.59M

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
Depreciation82.62M75.63M60.17M64.87M
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
Investments-500k4.41M-536k-536k
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