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).

GFL 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 Geneva Finance Limited (GFL), the free cash flow value is 119000.

All amounts in NZD

Operating Cash
119k
Capital Expenditure
-
Free Cash Flow
119000

Geneva Finance 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).

GFL Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Geneva Finance Limited (NZX:GFL).

31 Mar 202131 Mar 202031 Mar 201931 Mar 2018
Net Income6.18M3.71M4.05M6.12M
Depreciation459k447k167k72k
Change To Netincome435k2.26M6.24M-1.08M
Change To Liabilities-1.27M-2.67M-1.96M-2.22M
Change To Operating Activities-5.55M2.34M-13.48M-1.97M
Total Cash From Operating Activities119k6.38M-4.74M1.11M
Investments3.5M3.5M-2.47M-1.14M
Total Cashflows From Investing Activities3.3M-2.47M-3.57M-1.44M
Dividends Paid-1.98M-2.55M-2.5M-2.11M
Net Borrowings6.03M1.02M13.09M5.85M
Other Cashflows From Financing Activities-283k-283k-1k-1k
Total Cash From Financing Activities3.76M-1.53M12.08M3.73M
Change In Cash7.18M2.37M3.78M3.4M