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).

JLG 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 Just Life Group Limited (JLG), the free cash flow value is 5.96M.

All amounts in NZD

Operating Cash
6.7M
Capital Expenditure
-733k
Free Cash Flow
5.96M

Just Life Group Limited has a positive 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).

JLG Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Just Life Group Limited (NZX:JLG).

30 Jun 202130 Jun 202030 Jun 201930 Jun 2018
Net Income3.31M2.93M1.91M2.07M
Depreciation2.04M2.06M2.28M1.43M
Change To Netincome-1k919k2k-56k
Change To Account Receivables332k61k-63k-871k
Change To Liabilities-942k-321k512k328k
Change To Inventory1.59M-545k-550k-9k
Total Cash From Operating Activities6.7M5.62M4.73M3.54M
Capital Expenditures-733k-975k-1.81M-2.11M
Total Cashflows From Investing Activities-19.93M-1.16M-2.16M-11.6M
Dividends Paid-574k-1.55M-1.89M-1.68M
Net Borrowings10.07M-2.92M-36k8.84M
Total Cash From Financing Activities13.55M-4.46M-1.93M7.16M
Change In Cash315k-4k644k-901k
Issuance Of Stock4.06M4.06M4.06M4.06M