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).

CVT 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 Comvita Limited (CVT), the free cash flow value is 14.22M.

All amounts in NZD

Operating Cash
24.82M
Capital Expenditure
-10.6M
Free Cash Flow
14.22M

Comvita 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).

CVT Cash Flow Statement History

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

30 Jun 202130 Jun 202030 Jun 201930 Jun 2018
Net Income9.48M-9.7M-27.72M8.21M
Depreciation9.9M10.03M4.75M4.46M
Change To Netincome-553k8.1M11.98M608k
Change To Account Receivables-5.8M13.15M24.93M-11.8M
Change To Liabilities-2.91M-5.44M4M3.54M
Change To Inventory11.67M19.51M-15.7M-28.64M
Change To Operating Activities1.66M2.2M17.97M-2.37M
Total Cash From Operating Activities24.82M39.3M21.09M-22.12M
Capital Expenditures-10.6M-5.21M-16.12M-4.74M
Investments759k759k-5.99M235k
Other Cashflows From Investing Activities459k-1.85M-1M-2.19M
Total Cashflows From Investing Activities-9.28M-9.69M-17.7M-6.99M
Net Borrowings-14.91M-70.91M2.55M30.2M
Total Cash From Financing Activities-16.17M-23.27M2.24M29.38M
Effect Of Exchange Rate210k33k-254k105k
Change In Cash-413k6.37M5.37M375k
Repurchase Of Stock-1.26M-572k-572k-572k