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