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 185.90M.

All amounts in NZD

Operating Cash
324.3M
Capital Expenditure
-138.4M
Free Cash Flow
185.90M

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 2022 31 Mar 2021 31 Mar 2020 31 Mar 2019
Net Income 376.9M 524.2M 287.3M 209.2M
Depreciation 86.7M 80.5M 56.4M 37.8M
Change To Netincome -107.1M 79.6M 1.4M 7.5M
Change To Account Receivables 52.5M -5.1M -64.8M -11.8M
Change To Liabilities -5.7M 65.7M 46.9M 17.4M
Change To Inventory -88.3M -124.1M -10.4M -10.7M
Total Cash From Operating Activities 324.3M 625.3M 321.4M 253.3M
Capital Expenditures -138.4M -160.2M -145.3M -115.4M
Investments 80.3M -202.6M 15M 7.5M
Total Cashflows From Investing Activities -89.5M -387.3M -155.7M -125.7M
Dividends Paid -183.9M -161.2M -130.4M -101M
Net Borrowings -14.1M -10.2M -14.9M -600k
Total Cash From Financing Activities -235.8M -188M -159M -113.1M
Effect Of Exchange Rate 200k -1M -1.2M 600k
Change In Cash -800k 49M 5.5M 15.1M
Issuance Of Stock 3.2M 3.5M 2.3M 2.1M