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).

## MCK 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 Millennium & Copthorne Hotels New Zealand Limited (MCK), the free cash flow value is 25.04M.

All amounts in NZD

Operating Cash
29.02M
Capital Expenditure
-3.98M
Free Cash Flow
25.04M

Millennium & Copthorne Hotels New Zealand 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).

## MCK Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Millennium & Copthorne Hotels New Zealand Limited (NZX:MCK).

31 Dec 202131 Dec 202031 Dec 201931 Dec 2018
Net Income40.05M48.48M49.66M49.38M
Depreciation8.38M9.13M9.72M8.19M
Change To Netincome-6.64M-13.16M10.18M13.94M
Change To Account Receivables-3.26M8.97M-1.27M-3.79M
Change To Liabilities7.2M1.67M2.02M4.45M
Change To Inventory-16.19M30.56M-8.46M-42.86M
Change To Operating Activities-513k436k1.69M383k
Total Cash From Operating Activities29.02M86.1M63.54M29.69M
Capital Expenditures-3.98M-5.96M-6.92M-11.88M
Investments55.78M-55.23M-13.76M-19.4M
Total Cashflows From Investing Activities49.73M-64.4M-20.56M-33.73M
Net Borrowings-38.58M-30.43M1.61M-2M
Other Cashflows From Financing Activities-3.91M-3.81M-4.3M-4.23M
Total Cash From Financing Activities-42.49M-46.11M-14.55M-15.72M
Effect Of Exchange Rate1.12M2M326k8k
Change In Cash37.38M-22.42M28.75M-19.76M