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
Capital Expenditure
Free Cash Flow

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