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).

## AAJ 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 Aruma Resources Limited (AAJ), the free cash flow value is -263650.

All amounts in AUD

Operating Cash
-263.65k
Capital Expenditure
-
Free Cash Flow
-263650

Aruma Resources 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).

## AAJ Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Aruma Resources Limited (ASX:AAJ).

30 Jun 202030 Jun 201930 Jun 201830 Jun 2017
Net Income-281.38k-1.63M-1.89M-604.94k
Depreciation126.94k54.27k116.25k13.36k
Change To Account Receivables-29.12k13.24k-7.95k-32.98k
Change To Liabilities1.46k-1.69k-24.41k74.54k
Change To Operating Activities-81.55k304.99k-16.46k-15.34k
Total Cash From Operating Activities-263.65k-1.08M-1.71M-565.36k
Other Cashflows From Financing Activities-64.36k-36.03k-124.23k-98.94k
Total Cash From Financing Activities656.84k651.53k1.65M863.97k
Change In Cash393.19k-48.84k629.43k-415.99k
Issuance Of Stock721.2k687.56k1.77M962.91k