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).

CEN 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 Contact Energy Limited (CEN), the free cash flow value is 34.00M.

All amounts in NZD

Operating Cash
Capital Expenditure
Free Cash Flow

Contact Energy 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).

CEN Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Contact Energy Limited (NZX:CEN).

30 Jun 2022 30 Jun 2021 30 Jun 2020 30 Jun 2019
Net Income 182M 187M 125M 345M
Depreciation 224M 220M 195M 178M
Change To Netincome -18M -18M 18M -160M
Change To Account Receivables 20M -68M -8M -40M
Change To Liabilities -60M 76M -17M -6M
Change To Inventory 8M -35M -3M 12M
Total Cash From Operating Activities 400M 432M 341M 401M
Capital Expenditures -366M -137M -100M -63M
Investments -11M -8M -3M -8M
Total Cashflows From Investing Activities -381M -177M -106M 319M
Dividends Paid -242M -274M -280M -251M
Net Borrowings 245M -267M 42M -425M
Other Cashflows From Financing Activities -4M -4M -4M -4M
Total Cash From Financing Activities -1M -149M -238M -676M
Change In Cash 18M 106M -3M 44M