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 168.03M.

All amounts in NZD

Operating Cash
183.07M
Capital Expenditure
-15.04M
Free Cash Flow
168.03M

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 202131 Jul 202031 Jul 201931 Jul 2018
Net Income63.07M8.13M57.63M50.67M
Depreciation112.44M99.98M12.1M11.64M
Change To Netincome-13.97M866k1.79M1.28M
Change To Account Receivables5.6M24.03M-379k5.27M
Change To Liabilities3.5M9.73M3.66M10.88M
Change To Inventory8.19M20.3M-13.04M-13.87M
Change To Operating Activities431k431k431k431k
Total Cash From Operating Activities183.07M170.34M61.67M75.6M
Capital Expenditures-15.04M-15.4M-11.35M-14.3M
Total Cashflows From Investing Activities-36.58M-395.78M-15.7M-121.62M
Dividends Paid-14.18M-27.21M-33.88M-27.21M
Net Borrowings-218.64M135.7M-14M28.91M
Total Cash From Financing Activities-232.82M449.14M-47.88M50.4M
Effect Of Exchange Rate-2.94M1.96M-12k226k
Change In Cash-89.27M225.66M-1.92M4.61M