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