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 658.00M.

All amounts in NZD

Operating Cash
889M
Capital Expenditure
-231M
Free Cash Flow
658.00M

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 202130 Jun 202030 Jun 201930 Jun 2018
Net Income305M-196M164M-190M
Depreciation363M370M199M214M
Change To Netincome219M178M194M-58M
Change To Account Receivables-62M95M26M-12M
Change To Liabilities160M-67M-59M121M
Change To Inventory-22M-1M-69M-58M
Change To Operating Activities-74M31M-302M379M
Total Cash From Operating Activities889M410M153M396M
Capital Expenditures-231M-240M-348M-304M
Total Cashflows From Investing Activities-211M-234M914M-228M
Dividends Paid-99M-128M-68M-123M
Net Borrowings-946M-159M-280M-317M
Other Cashflows From Financing Activities-31M-9M-7M-38M
Total Cash From Financing Activities-1.11B-443M-355M272M
Effect Of Exchange Rate-5M-1M-5M6M
Change In Cash-438M-268M707M446M
Repurchase Of Stock-35M-147M-147M-147M