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