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).

ERD 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 EROAD Limited (ERD), the free cash flow value is -14.10M.

All amounts in NZD

Operating Cash
Capital Expenditure
Free Cash Flow

EROAD 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).

ERD Cash Flow Statement History

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

31 Mar 2022 31 Mar 2021 31 Mar 2020 31 Mar 2019
Net Income -9.6M 2.5M 1M -4.9M
Depreciation 11.2M 8.6M 8.4M 6.7M
Change To Netincome 300k -1M -1M -900k
Change To Account Receivables -10.4M 2.7M -200k 1.1M
Change To Liabilities 5.8M -1.4M 800k 1M
Total Cash From Operating Activities 14.3M 28.1M 23.1M 14.2M
Capital Expenditures -28.4M -4.7M -11.6M -10.9M
Total Cashflows From Investing Activities -134.6M -22.8M -35.9M -27.3M
Net Borrowings -4.5M -2.4M 100k 7.3M
Other Cashflows From Financing Activities -3.4M -2.1M -2.1M -2.1M
Total Cash From Financing Activities 77.1M 48.4M 100k 7.3M
Change In Cash -43.2M 53.7M -12.7M -5.8M
Issuance Of Stock 85M 52.9M 52.9M 52.9M