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).

## GSH 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 Good Spirits Hospitality Limited (GSH), the free cash flow value is -2.17M.

All amounts in NZD

Operating Cash
621.49k
Capital Expenditure
-2.79M
Free Cash Flow
-2.17M

Good Spirits Hospitality 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).

## GSH Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Good Spirits Hospitality Limited (NZX:GSH).

30 Jun 2022 30 Jun 2021 30 Jun 2020 30 Jun 2019
Net Income -6.6M -5.84M -5.83M 185.26k
Depreciation 2.34M 2.18M 2.27M 538.97k
Change To Netincome 3.69M 6.98M 8.34M 1.12M
Change To Account Receivables -18.11k -216.56k -58.99k -163.77k
Change To Liabilities 1.27M -531.58k 435.38k -99.03k
Change To Inventory -54.41k -70.09k -19.41k 10.41k
Total Cash From Operating Activities 621.49k 2.51M 4.76M 2.31M
Capital Expenditures -2.79M -731.15k -2.53M -878.4k
Total Cashflows From Investing Activities -2.79M -731.15k -2.53M -4.91M
Net Borrowings 1.9M -744.51k 701.61k 2.84M
Other Cashflows From Financing Activities -1.33M -1.39M -1.44M -111.68k
Total Cash From Financing Activities 564.58k -2.13M -741.8k 2.73M
Change In Cash -1.61M -355.15k 1.49M 127.88k