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).

## AJL 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 AJ Lucas Group Limited (AJL), the free cash flow value is -13.00M.

All amounts in AUD

Operating Cash
2M
Capital Expenditure
-15M
Free Cash Flow
-13.00M

AJ Lucas 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).

## AJL Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for AJ Lucas Group Limited (ASX:AJL).

30 Jun 202030 Jun 201930 Jun 201830 Jun 2017
Net Income-8.87M-39.39M-16.27M-39.03M
Depreciation7.35M5.38M5.59M4.84M
Change To Netincome-769k21.31M-487k16.73M
Change To Account Receivables14.45M-10.34M-4.74M3.26M
Change To Liabilities-12.68M-4.86M7.33M-1.47M
Change To Inventory-1.46M36.72M-9.98M-14.81M
Change To Operating Activities384k340k847k214k
Total Cash From Operating Activities2M14.84M-13.11M-27.19M
Capital Expenditures-15M-18.18M-15.8M-7.85M
Investments-5.81M-13.5M-2.71M-5.15M
Total Cashflows From Investing Activities-19.75M-27.36M-13.51M-12.77M
Net Borrowings9.08M12.46M-18.21M24.29M
Other Cashflows From Financing Activities-4.53M-4.53M-2.36M-2.73M
Total Cash From Financing Activities8.66M12.46M13.91M39.76M
Effect Of Exchange Rate24k367k388k-131k
Change In Cash-5.68M307k-12.32M-329k
Issuance Of Stock4.11M4.11M34.49M18.2M