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).

DOW 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 (DOW), the free cash flow value is 238.00M.

All amounts in

Operating Cash
441.6M
Capital Expenditure
-203.6M
Free Cash Flow
238.00M

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).

DOW Cash Flow Statement History

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

30 Jun 201730 Jun 201630 Jun 201530 Jun 2014
Net Income181.5M180.6M210.2M216M
Depreciation220.2M258.7M253.1M266.4M
Change To Netincome10.3M36.4M-11.4M37.9M
Change To Account Receivables-159.8M-23.4M121.3M341.8M
Change To Liabilities160.7M-71.9M-61.6M-203.8M
Change To Inventory38.7M18.5M40.2M-32.5M
Change To Operating Activities-13M46.3M-68M-44.8M
Total Cash From Operating Activities441.6M447.8M486.5M583.4M
Capital Expenditures-203.6M-185.7M-177.6M-379.5M
Investments600k-900k-53.1M-15.5M
Other Cashflows From Investing Activities1.2M1.2M1.2M600k
Total Cashflows From Investing Activities-995.8M-205.5M-498.2M-278.8M
Dividends Paid-110.6M-113.1M-114.8M-95.6M
Net Borrowings-48.8M93.8M79.7M-260.9M
Total Cash From Financing Activities830.5M-45.8M-46.8M-356.5M
Effect Of Exchange Rate-1.1M700k-1.1M3.8M
Change In Cash275.2M197.2M-59.6M-48.1M