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 -8.36M.

All amounts in NZD

Operating Cash
-6.6M
Capital Expenditure
-1.76M
Free Cash Flow
-8.36M

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 2022 31 Mar 2021 31 Mar 2020 31 Mar 2019
Net Income -7.86M -7.49M -6.04M -5.09M
Depreciation 1.12M 1.05M 729k 365k
Change To Netincome 665k 2.06M 2.13M 218k
Change To Account Receivables -2.4M -1.06M -524k -65k
Change To Liabilities 2M -59k 1.48M 187k
Change To Inventory -248k 260k 134k -470k
Change To Operating Activities -1.22M 860k 99k -157k
Total Cash From Operating Activities -6.6M -3.54M -1.1M -4.04M
Capital Expenditures -1.76M -844k -781k -477k
Investments -106k -106k -106k -106k
Total Cashflows From Investing Activities -3.69M -6.63M -4.04M -1.05M
Net Borrowings -308k -271k -161k -161k
Total Cash From Financing Activities 22.82M 18.36M 5.79M 5.87M
Effect Of Exchange Rate 480k -1.17M 211k 104k
Change In Cash 13.01M 7.01M 852k 889k
Issuance Of Stock 23.13M 18.63M 6.51M 6.25M