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 23.40M.

All amounts in NZD

Operating Cash
Capital Expenditure
Free Cash Flow

EROAD 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).

ERD Cash Flow Statement History

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

31 Mar 202131 Mar 202031 Mar 201931 Mar 2018
Net Income2M1M-4.9M-3.46M
Change To Netincome-1.2M-1M-900k-1.84M
Change To Account Receivables2.4M-200k1.1M-6.11M
Change To Liabilities-1.4M800k1M1.56M
Total Cash From Operating Activities28.1M23.1M14.2M5.21M
Capital Expenditures-4.7M-11.6M-10.9M-11.32M
Total Cashflows From Investing Activities-22.8M-35.9M-27.3M-23.8M
Net Borrowings-2.4M100k7.3M18.7M
Other Cashflows From Financing Activities-2.1M-2.1M-2.1M-673.66k
Total Cash From Financing Activities48.4M100k7.3M39.53M
Change In Cash53.7M-12.7M-5.8M20.94M
Issuance Of Stock52.9M52.9M52.9M21.5M