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 43.10M.

All amounts in NZD

Operating Cash
Capital Expenditure
Free Cash Flow

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 2022 30 Jun 2021 30 Jun 2020 30 Jun 2019
Net Income 33.18M 24.83M 21.83M 21.83M
Depreciation 8.08M 6.79M 6.29M 5.96M
Change To Netincome 2M 4.22M -3.12M 1.87M
Change To Account Receivables 5.95M -3.26M 13.61M 2.5M
Change To Liabilities -7.35M 12.22M -4.27M -3.62M
Change To Inventory 26.36M -24.09M 29.04M 12.69M
Total Cash From Operating Activities 67.25M 24.05M 64.22M 38.07M
Capital Expenditures -24.15M -19.46M -13.63M -16.32M
Investments 1.26M 1.26M 1.26M 1.26M
Total Cashflows From Investing Activities -22.52M -18.21M -13.24M -17.36M
Dividends Paid -17.98M -15.37M -9.81M -16.35M
Net Borrowings -27.07M 3.93M -33.76M -8.5M
Other Cashflows From Financing Activities -2.58M 3.34M 2.4M 1.07M
Total Cash From Financing Activities -47.63M -8.1M -41.16M -23.78M
Change In Cash -2.89M -2.26M 9.81M -3.07M