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 -2.62M.

All amounts in NZD

Operating Cash
2.83M
Capital Expenditure
-5.45M
Free Cash Flow
-2.62M

Comvita Limited has a negative 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 2022 30 Jun 2021 30 Jun 2020 30 Jun 2019
Net Income 12.78M 9.48M -9.7M -27.72M
Depreciation 9.97M 9.9M 10.03M 4.75M
Change To Netincome -144k -553k 8.1M 11.98M
Change To Account Receivables -4.29M -5.8M 13.15M 24.93M
Change To Liabilities 15.12M -2.91M -5.44M 4M
Change To Inventory -31.15M 11.67M 19.51M -15.7M
Change To Operating Activities -476k 1.66M 2.2M 17.97M
Total Cash From Operating Activities 2.83M 24.82M 39.3M 21.09M
Capital Expenditures -5.45M -10.6M -5.21M -16.12M
Investments -4.35M 759k 759k -5.99M
Other Cashflows From Investing Activities 243k 459k -1.85M -1M
Total Cashflows From Investing Activities -13.22M -9.28M -9.69M -17.7M
Dividends Paid -4.7M -4.7M -4.7M -918k
Net Borrowings 18.59M -14.91M -70.91M 2.55M
Total Cash From Financing Activities 10.88M -16.17M -23.27M 2.24M
Effect Of Exchange Rate 992k 210k 33k -254k
Change In Cash 1.49M -413k 6.37M 5.37M
Repurchase Of Stock -3M -1.26M -572k -572k