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).

GEO 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 Geo Limited (GEO), the free cash flow value is -647000.

All amounts in NZD

Operating Cash
-641k
Capital Expenditure
-6k
Free Cash Flow
-647000

Geo 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).

GEO Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Geo Limited (NZX:GEO).

30 Jun 202130 Jun 202030 Jun 201930 Jun 2018
Net Income-1.79M-2.05M-5.5M-8.69M
Depreciation138k149k33k38k
Change To Netincome262k163k3.25M5.34M
Change To Account Receivables-277k334k182k-511k
Change To Liabilities249k310k-94k539k
Total Cash From Operating Activities-641k-439k-1.22M-2.18M
Capital Expenditures-6k-4k-35k-38k
Investments10k-2k-27k69k
Other Cashflows From Investing Activities180k180k180k200k
Total Cashflows From Investing Activities-640k-998k-1.2M-371k
Net Borrowings175k1.06M-357k1.5M
Other Cashflows From Financing Activities-288k-21k-101k-214k
Total Cash From Financing Activities1.89M985k1.18M3.69M
Effect Of Exchange Rate3k-259k270k270k
Change In Cash614k-711k-971k1.13M
Issuance Of Stock2M2M1.63M2.4M