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 1.56M.

All amounts in NZD

Operating Cash
7.18M
Capital Expenditure
-5.63M
Free Cash Flow
1.56M

Foley Wines 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).

FWL Cash Flow Statement History

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

30 Jun 202130 Jun 202030 Jun 201930 Jun 2018
Net Income3.87M6.92M3.52M1.8M
Depreciation5.78M5.57M3.35M2.65M
Change To Netincome2.2M-1.49M48k-223k
Change To Account Receivables-2.32M1.7M145k521k
Change To Liabilities-2.31M-449k2.08M582k
Change To Inventory819k-2.22M-3.25M2.45M
Change To Operating Activities-96k184k-636k64k
Total Cash From Operating Activities7.18M10.79M6.41M7.17M
Capital Expenditures-5.63M-4.42M-2.95M-2.12M
Total Cashflows From Investing Activities-5.43M-4.34M-49.95M-2.1M
Dividends Paid-1.97M-1.97M-1.59M-1.57M
Net Borrowings-3.14M-2M25.81M-999k
Total Cash From Financing Activities-5.12M-3.97M44.22M-2.57M
Change In Cash-3.36M2.48M677k2.5M