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).

LIC 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 Livestock Improvement Corporation Limited (LIC), the free cash flow value is 46.56M.

All amounts in NZD

Operating Cash
57.13M
Capital Expenditure
-10.57M
Free Cash Flow
46.56M

Livestock Improvement Corporation 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).

LIC Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Livestock Improvement Corporation Limited (NZX:LIC).

31 May 202231 May 202131 May 202031 May 2019
Net Income26.72M22.94M17.49M22.17M
Depreciation8.36M7.97M7.94M7.58M
Change To Netincome18.08M-2.74M4.26M-1.92M
Change To Liabilities
Change To Operating Activities-6.25M-1.91M2.57M8.11M
Total Cash From Operating Activities57.13M40.46M52.02M55.17M
Capital Expenditures-10.57M-7.84M-6.23M-16.18M
Other Cashflows From Investing Activities34.83M-612k-1.35M-1.64M
Total Cashflows From Investing Activities17.68M-16.11M-21.4M-36.81M
Dividends Paid-26.36M-15.4M-13.12M-2.44M
Net Borrowings-3.6M-5.08M-5.96M-13.87M
Total Cash From Financing Activities-29.61M-21.82M-18.7M-16.34M
Effect Of Exchange Rate110k-191k37k-4k
Change In Cash45.31M2.33M11.96M2.01M
Issuance Of Stock352k352k386k60k