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