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 1.91M.

All amounts in NZD

Operating Cash
2.65M
Capital Expenditure
-731.15k
Free Cash Flow
1.91M

Good Spirits Hospitality 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).

GSH Cash Flow Statement History

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

30 Jun 202130 Jun 202030 Jun 201930 Jun 2018
Net Income-5.84M-5.83M185.26k4.5M
Depreciation2.18M2.27M538.97k485.38k
Change To Netincome6.97M8.34M1.12M-5.48M
Change To Account Receivables-79.16k-58.99k-163.77k65.89k
Change To Liabilities-531.58k435.38k-99.03k-120.18k
Change To Inventory-70.09k-19.41k10.41k332
Total Cash From Operating Activities2.65M4.76M2.31M-1.42M
Capital Expenditures-731.15k-2.53M-878.4k-198.04k
Total Cashflows From Investing Activities-731.15k-2.53M-4.91M7.8M
Net Borrowings-744.51k701.61k2.84M-5.82M
Other Cashflows From Financing Activities-1.39M-1.44M-111.68k-111.68k
Total Cash From Financing Activities-2.13M-741.8k2.73M-5.82M
Change In Cash-217.75k1.49M127.88k562.43k