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 116.33M.

All amounts in NZD

Operating Cash
130.78M
Capital Expenditure
-14.44M
Free Cash Flow
116.33M

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 202131 Mar 202031 Mar 201931 Mar 2018
Net Income131.11M42.64M59.08M57.64M
Depreciation6.54M5.67M4.77M4.21M
Change To Netincome-122.13M-31.3M-48.34M-44.6M
Change To Account Receivables-229k-10.07M-5.78M-3.81M
Change To Liabilities18.69M18.41M7.98M4.68M
Change To Operating Activities96.65M77.4M51.15M35.71M
Total Cash From Operating Activities130.78M102.92M69.14M53.88M
Capital Expenditures-14.44M-12.45M-7.54M-11.74M
Total Cashflows From Investing Activities-154.83M-334.42M-113.04M-132.91M
Dividends Paid-28.75M-29.59M-22.68M-17.2M
Net Borrowings53.91M121.86M68M24.5M
Other Cashflows From Financing Activities1.08M-2.83M24k-3.31M
Total Cash From Financing Activities26.24M231.17M45.34M80.86M
Change In Cash2.19M-333k1.45M1.83M