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).

HGH 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 Heartland Group Holdings Limited (HGH), the free cash flow value is -272.43M.

All amounts in NZD

Operating Cash
-264.87M
Capital Expenditure
-7.56M
Free Cash Flow
-272.43M

Heartland Group Holdings 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).

HGH Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Heartland Group Holdings Limited (NZX:HGH).

30 Jun 202130 Jun 202030 Jun 201930 Jun 2018
Net Income87.03M71.97M73.62M67.51M
Depreciation8.11M8.34M5.23M5.16M
Change To Netincome-82.41M-47.62M-60.84M-4.31M
Change To Liabilities3.01M-7.59M-4.21M2.53M
Change To Operating Activities-285.04M-165.07M-338.49M-434.66M
Total Cash From Operating Activities-264.87M-130.74M-324.72M-358.91M
Capital Expenditures-7.56M-6.74M-4.51M-8.84M
Investments23.28M-45.56M-11.23M-22.81M
Total Cashflows From Investing Activities15.71M-52.18M-15.74M-35.93M
Dividends Paid-30.34M-46.1M-36.27M-35.15M
Net Borrowings389.25M190.74M136.46M56.49M
Other Cashflows From Financing Activities-74.61M110.97M270.21M306.82M
Total Cash From Financing Activities284.31M255.61M370.41M387.39M
Change In Cash35.15M72.68M29.95M-7.45M