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 202131 Dec 202031 Dec 201931 Dec 2018
Net Income-2.87M-3.48M-2.18M-736.12k
Depreciation410.18k218.31k189.62k17.48k
Change To Netincome-736.15k315.77k69.69k69.69k
Change To Account Receivables202.3k-66.54k-115.68k30.31k
Change To Liabilities-227.05k61.95k86.85k25.08k
Change To Operating Activities80.19k18.72k12.72k-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 Activities4.28M5.89M9.86M10.52M
Change In Cash-3.64M671.52k5.34M9.4M
Issuance Of Stock4.73M6.28M11M11.1M