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).

## CBD 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 Cannasouth Limited (CBD), the free cash flow value is -3.44M.

All amounts in NZD

Operating Cash
-3.14M
Capital Expenditure
-299.21k
Free Cash Flow
-3.44M

Cannasouth 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).

## CBD Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Cannasouth Limited (NZX:CBD).

31 Dec 2021 31 Dec 2020 31 Dec 2019 31 Dec 2018
Net Income -2.87M -3.48M -2.18M -736.12k
Depreciation 410.18k 218.31k 189.62k 17.48k
Change To Netincome -736.15k 315.77k 69.69k 69.69k
Change To Account Receivables 202.3k -66.54k -115.68k 30.31k
Change To Liabilities -227.05k 61.95k 86.85k 25.08k
Change To Operating Activities 80.19k 18.72k 12.72k -39.63k
Total Cash From Operating Activities -3.14M -2.93M -1.93M -702.88k
Capital Expenditures -299.21k -86.42k -785.69k -426.23k
Other Cashflows From Investing Activities -4.56M -2.2M -2.2M -2.2M
Total Cashflows From Investing Activities -4.77M -2.29M -2.59M -426.23k
Net Borrowings -112.65k -26.07k -296.26k -20.08k
Other Cashflows From Financing Activities -336.37k -362.38k -841.68k -555k
Total Cash From Financing Activities 4.28M 5.89M 9.86M 10.52M
Change In Cash -3.64M 671.52k 5.34M 9.4M
Issuance Of Stock 4.73M 6.28M 11M 11.1M