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).

GTK 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 Gentrack Group Limited (GTK), the free cash flow value is 12.28M.

All amounts in NZD

Operating Cash
12.95M
Capital Expenditure
-663k
Free Cash Flow
12.28M

Gentrack Group 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).

GTK Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Gentrack Group Limited (NZX:GTK).

30 Sep 202130 Sep 202030 Sep 201930 Sep 2018
Net Income3.19M-31.71M-3.31M13.87M
Depreciation5.65M5.93M3.63M2.8M
Change To Netincome-3.54M31.08M14.49M-42k
Change To Account Receivables-3.17M10.85M-9.72M278k
Change To Liabilities1.27M-184k2.33M847k
Change To Operating Activities2.89M2.18M1.55M-1.1M
Total Cash From Operating Activities12.95M21.97M12.79M22.25M
Capital Expenditures-663k-324k-640k-2.29M
Total Cashflows From Investing Activities-663k-3.07M-6.29M-49.09M
Net Borrowings-5.24M-4.36M4.44M-46.83M
Other Cashflows From Financing Activities-176k-375k-679k-3.65M
Total Cash From Financing Activities-5.42M-7.74M-9.7M28.3M
Effect Of Exchange Rate-228k-457k431k205k
Change In Cash6.64M10.7M-2.77M1.67M