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 -5.19M.

All amounts in NZD

Operating Cash
-5.17M
Capital Expenditure
-24k
Free Cash Flow
-5.19M

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 2022 31 Mar 2021 31 Mar 2020 31 Mar 2019
Net Income -6.19M -5.09M -4.88M -9.03M
Depreciation 215k 589k 695k 190k
Change To Netincome 262k 475k 487k 729k
Change To Account Receivables 287k -200k 684k 1.39M
Change To Liabilities -63k -686k 413k -2.66M
Change To Operating Activities 324k -88k -88k -88k
Total Cash From Operating Activities -5.17M -5M -2.6M -9.38M
Capital Expenditures -24k -25k -25k -67k
Other Cashflows From Investing Activities 374k 374k 374k 374k
Total Cashflows From Investing Activities 350k -21k -21k 933k
Net Borrowings -708k -484k -2.82M 2.5M
Other Cashflows From Financing Activities -131k -1.13M -1.28M -44k
Total Cash From Financing Activities -839k 9.21M 6.37M 2.46M
Effect Of Exchange Rate -152k -16k -34k 56k
Change In Cash -5.81M 4.17M 3.73M -5.94M