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).

IKE 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 ikeGPS Group Limited (IKE), the free cash flow value is -4.39M.

All amounts in NZD

Operating Cash
-3.54M
Capital Expenditure
-844k
Free Cash Flow
-4.39M

ikeGPS Group 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).

IKE Cash Flow Statement History

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

31 Mar 202131 Mar 202031 Mar 201931 Mar 2018
Net Income-7.49M-6.04M-5.09M-6.73M
Depreciation1.05M729k365k403k
Change To Netincome2.06M2.13M218k817k
Change To Account Receivables-1.06M-524k-65k-463k
Change To Liabilities-59k1.48M187k504k
Change To Inventory260k134k-470k997k
Change To Operating Activities860k99k-157k461k
Total Cash From Operating Activities-3.54M-1.1M-4.04M-2.81M
Capital Expenditures-844k-781k-477k-26k
Other Cashflows From Investing Activities8k12k32k6k
Total Cashflows From Investing Activities-6.63M-4.04M-1.05M-1.24M
Net Borrowings-271k-161k-161k-161k
Total Cash From Financing Activities18.36M5.79M5.87M4.01M
Effect Of Exchange Rate-1.17M211k104k-102k
Change In Cash7.01M852k889k-144k
Issuance Of Stock18.63M6.51M6.25M4.11M