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).

AIR 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 Air New Zealand Limited (AIR), the free cash flow value is 223.00M.

All amounts in NZD

Operating Cash
Capital Expenditure
Free Cash Flow

Air New Zealand Limited has a positive 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).

AIR Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Air New Zealand Limited (NZX:AIR).

30 Jun 2022 30 Jun 2021 30 Jun 2020 30 Jun 2019
Net Income -591M -292M -454M 276M
Depreciation 621M 667M 794M 511M
Change To Netincome 81M -71M 333M -20M
Change To Liabilities 662M -127M -253M 65M
Change To Operating Activities -270M 93M -237M 111M
Total Cash From Operating Activities 550M 318M 230M 986M
Capital Expenditures -327M -226M -615M -821M
Investments -18M 39M -36M -75M
Total Cashflows From Investing Activities -331M -177M -542M -883M
Net Borrowings -80M -129M -234M -175M
Other Cashflows From Financing Activities 32M -184M 59M 44M
Total Cash From Financing Activities 1.31B -313M -305M -391M
Change In Cash 1.53B -172M -617M -288M
Repurchase Of Stock -400M -400M -400M -400M
Issuance Of Stock 1.76B 1.76B 1.76B 1.76B