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).

## ARV 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 Arvida Group Limited (ARV), the free cash flow value is 136.13M.

All amounts in NZD

Operating Cash
151.78M
Capital Expenditure
-15.65M
Free Cash Flow
136.13M

Arvida Group 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).

## ARV Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Arvida Group Limited (NZX:ARV).

31 Mar 2022 31 Mar 2021 31 Mar 2020 31 Mar 2019
Net Income 198.88M 131.11M 42.64M 59.08M
Depreciation 8.24M 6.54M 5.67M 4.77M
Change To Netincome -194.5M -122.13M -31.3M -48.34M
Change To Account Receivables -21.45M -229k -10.07M -5.78M
Change To Liabilities 58.2M 18.69M 18.41M 7.98M
Change To Operating Activities 102.27M 96.65M 77.4M 51.15M
Total Cash From Operating Activities 151.78M 130.78M 102.92M 69.14M
Capital Expenditures -15.65M -14.44M -12.45M -7.54M
Other Cashflows From Investing Activities 1.2M 1.2M 1.2M 1.2M
Total Cashflows From Investing Activities -537.12M -153.63M -334.42M -113.04M
Dividends Paid -20.32M -28.75M -29.59M -22.68M
Net Borrowings 85.96M 53.91M 121.86M 68M
Other Cashflows From Financing Activities -9M -119k -2.83M 24k
Total Cash From Financing Activities 387.07M 25.04M 231.17M 45.34M
Change In Cash 1.73M 2.19M -333k 1.45M
Issuance Of Stock 330.44M 330.44M 141.73M 141.73M