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).

## FBU 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 Fletcher Building Limited (FBU), the free cash flow value is 193.00M.

All amounts in NZD

Operating Cash
592M
Capital Expenditure
-399M
Free Cash Flow
193.00M

Fletcher Building 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).

## FBU Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Fletcher Building Limited (NZX:FBU).

30 Jun 2022 30 Jun 2021 30 Jun 2020 30 Jun 2019
Net Income 432M 305M -196M 164M
Depreciation 350M 354M 370M 199M
Change To Netincome 171M 218M 178M 194M
Change To Account Receivables -48M -62M 95M 26M
Change To Liabilities 84M 160M -67M -59M
Change To Inventory -239M -22M -1M -69M
Change To Operating Activities -158M -74M 31M -302M
Total Cash From Operating Activities 592M 879M 410M 153M
Capital Expenditures -399M -221M -240M -348M
Investments -10M -10M -10M -10M
Total Cashflows From Investing Activities -356M -201M -234M 914M
Dividends Paid -292M -99M -128M -68M
Net Borrowings -20M -946M -159M -280M
Other Cashflows From Financing Activities 5M -31M -9M -7M
Total Cash From Financing Activities -557M -1.11B -443M -355M
Effect Of Exchange Rate 6M -5M -1M -5M
Change In Cash -315M -438M -268M 707M
Repurchase Of Stock -250M -35M -147M -147M