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