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).

KMD 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 KMD Brands Limited (KMD), the free cash flow value is 60.24M.

All amounts in NZD

Operating Cash
81.81M
Capital Expenditure
-21.57M
Free Cash Flow
60.24M

KMD Brands 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).

KMD Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for KMD Brands Limited (NZX:KMD).

31 Jul 202231 Jul 202131 Jul 202031 Jul 2019
Net Income35.95M60.98M8.13M57.63M
Depreciation105.36M112.44M99.98M12.1M
Change To Netincome4.62M-14.8M866k1.79M
Change To Account Receivables-27.95M4.47M24.03M-379k
Change To Liabilities31.74M3.5M9.73M3.66M
Change To Inventory-66.56M8.19M20.3M-13.04M
Change To Operating Activities9k431k431k431k
Total Cash From Operating Activities81.81M178.15M170.34M61.67M
Capital Expenditures-21.57M-15.04M-15.4M-11.35M
Total Cashflows From Investing Activities-32.83M-31.65M-395.78M-15.7M
Dividends Paid-42.54M-14.18M-27.21M-33.88M
Net Borrowings-82.27M-218.64M135.7M-14M
Other Cashflows From Financing Activities-455k-455k-455k-455k
Total Cash From Financing Activities-125.26M-232.82M449.14M-47.88M
Effect Of Exchange Rate4.48M-2.94M1.96M-12k
Change In Cash-71.8M-89.27M225.66M-1.92M