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).

9SP 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 9 Spokes International Limited (9SP), the free cash flow value is -2.60M.

All amounts in NZD

Operating Cash
-2.6M
Capital Expenditure
-
Free Cash Flow
-2.60M

9 Spokes International 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).

9SP Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for 9 Spokes International Limited (ASX:9SP).

31 Mar 202031 Mar 201931 Mar 201831 Mar 2017
Net Income-4.88M-9.03M-17.19M-14.04M
Depreciation695k190k182k79k
Change To Netincome487k729k284k450k
Change To Account Receivables684k1.39M-387k-1.61M
Change To Liabilities413k-2.66M529k1.93M
Total Cash From Operating Activities-2.6M-9.38M-16.58M-13.18M
Net Borrowings-2.82M2.5M2.5M2.5M
Other Cashflows From Financing Activities-1.28M-44k-992k-2.77M
Total Cash From Financing Activities6.37M2.46M11.96M23.77M
Effect Of Exchange Rate-34k56k-284k-150k
Change In Cash3.73M-5.94M-187k4.1M
Issuance Of Stock10.47M10.47M12.96M26.54M