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).

CMO 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 The Colonial Motor Company Limited (CMO), the free cash flow value is 4.58M.

All amounts in NZD

Operating Cash
24.05M
Capital Expenditure
-19.46M
Free Cash Flow
4.58M

The Colonial Motor Company 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).

CMO Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for The Colonial Motor Company Limited (NZX:CMO).

30 Jun 202130 Jun 202030 Jun 201930 Jun 2018
Net Income24.83M21.83M21.83M24.98M
Depreciation6.79M6.29M5.96M3.74M
Change To Netincome4.22M-3.12M1.87M1.5M
Change To Account Receivables-3.26M13.61M2.5M-23.24M
Change To Liabilities12.22M-4.27M-3.62M13.03M
Change To Inventory-24.09M29.04M12.69M-33.25M
Total Cash From Operating Activities24.05M64.22M38.07M-11.35M
Capital Expenditures-19.46M-13.63M-16.32M-14.89M
Other Cashflows From Investing Activities-4.71M-351k-1.45M-1.45M
Total Cashflows From Investing Activities-22.92M-13.24M-17.36M-14.06M
Dividends Paid-15.37M-9.81M-16.35M-15.04M
Net Borrowings8.64M-33.76M-8.5M40.43M
Other Cashflows From Financing Activities3.34M2.4M1.07M2.22M
Total Cash From Financing Activities-3.39M-41.16M-23.78M27.61M
Change In Cash-2.26M9.81M-3.07M2.19M