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 32.61M.

All amounts in NZD

Operating Cash
Capital Expenditure
Free Cash Flow

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 202131 May 202031 May 201931 May 2018
Net Income22.94M17.49M22.17M9.27M
Change To Netincome-2.74M4.26M-1.92M-8.63M
Change To Liabilities
Change To Operating Activities-1.91M2.57M8.11M8.9M
Total Cash From Operating Activities40.46M52.02M55.17M37.83M
Capital Expenditures-7.84M-6.23M-16.18M-16.18M
Other Cashflows From Investing Activities-612k-1.35M-1.64M-6.16M
Total Cashflows From Investing Activities-16.11M-21.4M-36.81M-18.42M
Dividends Paid-15.4M-13.12M-2.44M-1.9M
Net Borrowings-5.08M-5.96M-13.87M-12.47M
Total Cash From Financing Activities-21.82M-18.7M-16.34M-20.4M
Effect Of Exchange Rate-191k37k-4k50k
Change In Cash2.33M11.96M2.01M-937k
Repurchase Of Stock-1.7M-1.7M-1.7M-5.34M
Issuance Of Stock352k386k60k60k