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 122.65M.

All amounts in NZD

Operating Cash
135.01M
Capital Expenditure
-12.36M
Free Cash Flow
122.65M

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 202130 Jun 202030 Jun 201930 Jun 2018
Net Income49.55M47.33M63.37M62.16M
Depreciation59.8M46.65M14.59M13.73M
Change To Netincome20.77M29.48M-231k428k
Change To Liabilities2.46M849k
Total Cash From Operating Activities135.01M127.17M76.01M75.71M
Capital Expenditures-12.36M-18.32M-16.84M-14.06M
Investments3.35M-6.27M2.48M464k
Other Cashflows From Investing Activities-213k-226k-470k-218k
Total Cashflows From Investing Activities-14.46M-124.25M-29.93M-24.86M
Dividends Paid-25.66M-47.4M-47M-45.37M
Net Borrowings-92.3M20.85M9.42M-7.63M
Other Cashflows From Financing Activities-44k-53k-53k-53k
Total Cash From Financing Activities-117.21M-2.48M-36.83M-52.3M
Effect Of Exchange Rate-87k264k-672k444k
Change In Cash3.25M700k8.58M-1.01M
Issuance Of Stock799k24.13M748k704k