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).

FSF 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 Fonterra Shareholders Fund (FSF), the free cash flow value is 21.00M.

All amounts in NZD

Operating Cash
21M
Capital Expenditure
-
Free Cash Flow
21.00M

Fonterra Shareholders Fund 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).

FSF Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Fonterra Shareholders Fund (NZX:FSF).

31 Jul 2022 31 Jul 2021 31 Jul 2020 31 Jul 2019
Net Income
Change To Netincome 21M 10M 10M 10M
Change To Liabilities
Total Cash From Operating Activities 21M 21M -6M 38M
Dividends Paid -21M -10M -10M -10M
Total Cash From Financing Activities -21M -21M 6M -38M