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).

FRE 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 Freightways Limited (FRE), the free cash flow value is 100.66M.

All amounts in NZD

Operating Cash
123.68M
Capital Expenditure
-23.02M
Free Cash Flow
100.66M

Freightways 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).

FRE Cash Flow Statement History

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

30 Jun 2022 30 Jun 2021 30 Jun 2020 30 Jun 2019
Net Income 70.09M 47.85M 47.33M 63.37M
Depreciation 62.24M 59.88M 46.65M 14.59M
Change To Netincome -2.45M 16.98M 29.48M -231k
Change To Account Receivables -20.91M -5.1M -5.1M -7.77M
Change To Liabilities 15.43M 17.15M 2.46M
Change To Inventory -2.5M -1.41M -1.41M -139k
Total Cash From Operating Activities 123.68M 133.22M 127.17M 76.01M
Capital Expenditures -23.02M -12.36M -18.32M -16.84M
Investments 256k 3.35M -6.27M 2.48M
Other Cashflows From Investing Activities 2k -213k -226k -470k
Total Cashflows From Investing Activities -37.78M -12.68M -124.25M -29.93M
Dividends Paid -59.68M -25.66M -47.4M -47M
Net Borrowings -24.2M -92.3M 20.85M 9.42M
Total Cash From Financing Activities -82.11M -117.21M -2.48M -36.83M
Effect Of Exchange Rate 400k -87k 264k -672k
Change In Cash 4.2M 3.25M 700k 8.58M
Issuance Of Stock 1.78M 799k 24.13M 748k