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 -679.61M.

All amounts in NZD

Operating Cash
-669.8M
Capital Expenditure
-9.81M
Free Cash Flow
-679.61M

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 2022 30 Jun 2021 30 Jun 2020 30 Jun 2019
Net Income 95.12M 87.03M 71.97M 73.62M
Depreciation 7.87M 8.11M 8.34M 5.23M
Change To Netincome -98.86M -82.41M -47.62M -60.84M
Change To Liabilities -8.96M 3.01M -7.59M -4.21M
Change To Operating Activities -685.51M -285.04M -165.07M -338.49M
Total Cash From Operating Activities -669.8M -264.87M -130.74M -324.72M
Capital Expenditures -9.81M -7.56M -6.74M -4.51M
Investments 75.53M 23.28M -45.56M -11.23M
Total Cashflows From Investing Activities -94.2M 15.71M -52.18M -15.74M
Dividends Paid -58.05M -30.34M -46.1M -36.27M
Net Borrowings 542.99M 389.25M 190.74M 136.46M
Other Cashflows From Financing Activities 407.48M -74.61M 110.97M 270.21M
Total Cash From Financing Activities 892.42M 284.31M 255.61M 370.41M
Change In Cash 128.43M 35.15M 72.68M 29.95M