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).

CNU 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 Chorus Limited (CNU), the free cash flow value is 50.00M.

All amounts in NZD

Operating Cash
570M
Capital Expenditure
-520M
Free Cash Flow
50.00M

Chorus 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).

CNU Cash Flow Statement History

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

30 Jun 202230 Jun 202130 Jun 202030 Jun 2019
Net Income64M51M52M53M
Depreciation362M360M346M328M
Change To Netincome57M20M4M20M
Change To Account Receivables-2M17M6M-4M
Change To Liabilities10M-6M-12M5M
Total Cash From Operating Activities570M544M474M496M
Capital Expenditures-520M-649M-682M-810M
Total Cashflows From Investing Activities-517M-649M-682M-810M
Dividends Paid-97M-86M-76M-49M
Net Borrowings36M102M-156M419M
Other Cashflows From Financing Activities81M147M162M167M
Total Cash From Financing Activities-18M163M-70M537M
Change In Cash35M58M-278M223M
Repurchase Of Stock-38M-38M-38M-38M