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 0.

All amounts in NZD

Operating Cash
Capital Expenditure
Free Cash Flow

Fonterra Shareholders Fund has a negative 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 202131 Jul 202031 Jul 201931 Jul 2018
Net Income
Change To Netincome10M10M10M31M
Change To Liabilities
Change To Operating Activities-10M-6M38M77M
Dividends Paid-10M-10M-10M-31M
Repurchase Of Stock-40M-59M-120M-198M
Issuance Of Stock50M65M82M121M