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 -5.20M.

All amounts in NZD

Operating Cash
Capital Expenditure
Free Cash Flow

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 202131 Mar 202031 Mar 201931 Mar 2018
Net Income-5.09M-4.88M-9.03M-17.19M
Change To Netincome307k487k729k284k
Change To Account Receivables-288k684k1.39M-387k
Change To Liabilities-686k413k-2.66M529k
Total Cash From Operating Activities-5.17M-2.6M-9.38M-16.58M
Capital Expenditures-25k-25k-67k-183k
Total Cashflows From Investing Activities-21k-21k933k4.72M
Net Borrowings-484k-2.82M2.5M2.5M
Other Cashflows From Financing Activities-960k-1.28M-44k-992k
Total Cash From Financing Activities9.38M6.37M2.46M11.96M
Effect Of Exchange Rate-16k-34k56k-284k
Change In Cash4.17M3.73M-5.94M-187k
Issuance Of Stock10.83M10.47M10.47M12.96M