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).

## DGL 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 Delegat Group Limited (DGL), the free cash flow value is 27.87M.

All amounts in NZD

Operating Cash
65.64M
Capital Expenditure
-37.77M
Free Cash Flow
27.87M

Delegat Group 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).

## DGL Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Delegat Group Limited (NZX:DGL).

30 Jun 2022 30 Jun 2021 30 Jun 2020 30 Jun 2019
Net Income 63.01M 61.92M 65.43M 46.8M
Depreciation 22.99M 22.34M 21.63M 20.47M
Change To Netincome 3.04M -1.33M 1.83M 734k
Change To Account Receivables -10.13M -2.21M -1.8M 2.63M
Change To Liabilities 12.54M 1.02M -4.43M -572k
Change To Inventory -24.62M -6.53M -1.56M -10.45M
Total Cash From Operating Activities 65.64M 74.28M 84.31M 59.56M
Capital Expenditures -37.77M -61.14M -28.64M -32.24M
Other Cashflows From Investing Activities 1k 1k 1k 4k
Total Cashflows From Investing Activities -38.01M -61.69M -29.01M -32.55M
Dividends Paid -20.23M -17.21M -17.2M -15.17M
Net Borrowings -10.94M -1.02M -28.11M -10.45M
Other Cashflows From Financing Activities -965k -965k -989k -989k
Total Cash From Financing Activities -32.13M -18.23M -46.3M -25.62M
Effect Of Exchange Rate 669k -173k 111k -10k
Change In Cash -3.83M -5.81M 9.11M 1.38M