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).

FWL 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 Foley Wines Limited (FWL), the free cash flow value is -4.92M.

All amounts in NZD

Operating Cash
7.57M
Capital Expenditure
-12.49M
Free Cash Flow
-4.92M

Foley Wines Limited 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).

FWL Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Foley Wines Limited (NZX:FWL).

30 Jun 202230 Jun 202130 Jun 202030 Jun 2019
Net Income6.2M3.87M6.92M3.52M
Depreciation5.63M5.78M5.57M3.35M
Change To Netincome-1.14M2.2M-1.49M48k
Change To Account Receivables216k-2.32M1.7M145k
Change To Liabilities-116k-2.31M-449k2.08M
Change To Inventory-3.97M819k-2.22M-3.25M
Change To Operating Activities695k-96k184k-636k
Total Cash From Operating Activities7.57M7.18M10.79M6.41M
Capital Expenditures-12.49M-5.63M-4.42M-2.95M
Total Cashflows From Investing Activities-12.26M-5.43M-4.34M-49.95M
Dividends Paid-2.63M-1.97M-1.97M-1.59M
Net Borrowings4.45M-3.14M-2M25.81M
Total Cash From Financing Activities1.82M-5.12M-3.97M44.22M
Change In Cash-2.87M-3.36M2.48M677k