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).

FPH 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 Fisher & Paykel Healthcare Corporation Limited (FPH), the free cash flow value is 465.10M.

All amounts in NZD

Operating Cash
625.3M
Capital Expenditure
-160.2M
Free Cash Flow
465.10M

Fisher & Paykel Healthcare Corporation 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).

FPH Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Fisher & Paykel Healthcare Corporation Limited (NZX:FPH).

31 Mar 202131 Mar 202031 Mar 201931 Mar 2018
Net Income524.2M287.3M209.2M190.2M
Depreciation80.5M56.4M37.8M41M
Change To Netincome79.6M1.4M7.5M6.1M
Change To Account Receivables-5.1M-64.8M-11.8M-16.4M
Change To Liabilities65.7M46.9M17.4M6.6M
Change To Inventory-124.1M-10.4M-10.7M9.6M
Total Cash From Operating Activities625.3M321.4M253.3M247.8M
Capital Expenditures-160.2M-145.3M-115.4M-83.2M
Investments-202.6M15M7.5M-100M
Total Cashflows From Investing Activities-387.3M-155.7M-125.7M-198.5M
Dividends Paid-161.2M-130.4M-101M-91.8M
Net Borrowings-10.2M-14.9M-600k21.6M
Total Cash From Financing Activities-188M-159M-113.1M-79.1M
Effect Of Exchange Rate-1M-1.2M600k600k
Change In Cash49M5.5M15.1M-29.8M
Issuance Of Stock3.5M2.3M2.1M1.8M