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).

## AJY 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 Asaplus Resources Limited (AJY), the free cash flow value is -224851.

All amounts in AUD

Operating Cash
-195.33k
Capital Expenditure
-29.52k
Free Cash Flow
-224851

Asaplus 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).

## AJY Cash Flow Statement History

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

30 Jun 202030 Jun 201931 Mar 201831 Mar 2017
Net Income-1.33M-1.56M-906.93k-1.3M
Depreciation1.43M1.48M45.88k43.35k
Change To Netincome-1.57M-975.43k7.41k876.57k
Change To Account Receivables42.57k223.87k-532.95k1.15M
Change To Liabilities1.1M-1.03M1.08M-214.09k
Change To Inventory130.44k-225.88k-543.05k-543.05k
Total Cash From Operating Activities-195.33k-2.09M-852.02k557.14k
Capital Expenditures-29.52k-343.25k-105.95k-474.8k
Total Cashflows From Investing Activities-29.52k-686.21k-105.95k-474.8k
Change In Cash-224.85k-133.82k315.39k82.35k