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 92.00M.

All amounts in NZD

Operating Cash
323M
Capital Expenditure
-231M
Free Cash Flow
92.00M

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 202130 Jun 202030 Jun 201930 Jun 2018
Net Income-289M-454M276M390M
Depreciation667M794M511M486M
Change To Netincome-71M333M-20M-3M
Change To Liabilities-127M-253M65M146M
Change To Operating Activities94M-237M111M-27M
Total Cash From Operating Activities323M230M986M1.03B
Capital Expenditures-231M-615M-821M-809M
Investments39M-36M-75M-2M
Total Cashflows From Investing Activities-182M-542M-883M-778M
Net Borrowings-129M-234M-175M18M
Other Cashflows From Financing Activities-184M59M44M-37M
Total Cash From Financing Activities-313M-305M-391M-279M
Change In Cash-172M-617M-288M-26M