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).

AJJ 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 Asian American Medical Group Limited (AJJ), the free cash flow value is -1.88M.

All amounts in SGD

Operating Cash
-1.07M
Capital Expenditure
-810.17k
Free Cash Flow
-1.88M

Asian American Medical Group 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).

AJJ Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Asian American Medical Group Limited (ASX:AJJ).

31 Aug 202031 Aug 201931 Aug 201831 Aug 2017
Net Income-2.46M-2.05M1.95M-3.09M
Depreciation855.12k44.35k46.06k53.55k
Change To Netincome1.19M-751.44k-2.17M129.94k
Change To Account Receivables-485.25k296.57k2.64M-1.17M
Change To Liabilities-184k-1.85M-1.8M1.55M
Change To Inventory16.62k35.41k-27.07k25.11k
Total Cash From Operating Activities-1.07M-4.28M639.9k-2.5M
Capital Expenditures-810.17k-540.94k-712.9k-4.85k
Other Cashflows From Investing Activities1650.13k63.71k100.62k
Total Cashflows From Investing Activities-809.96k-490.81k-645.36k95.77k
Net Borrowings-488.4k-488.4k-488.4k-488.4k
Other Cashflows From Financing Activities-131.41k-16933.63k33.63k
Total Cash From Financing Activities-619.81k1.05M33.63k33.63k
Effect Of Exchange Rate99.92k-119.67k-274.15k274.38k
Change In Cash-2.4M-3.84M-245.99k-2.13M