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).

MCY 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 Mercury NZ Limited (MCY), the free cash flow value is 238.00M.

All amounts in NZD

Operating Cash
352M
Capital Expenditure
-114M
Free Cash Flow
238.00M

Mercury NZ 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).

MCY Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Mercury NZ Limited (NZX:MCY).

30 Jun 2022 30 Jun 2021 30 Jun 2020 30 Jun 2019
Net Income 469M 141M 209M 357M
Depreciation 273M 204M 188M 182M
Change To Netincome -226M -226M -33M -194M
Change To Account Receivables -141M -32M -15M -26M
Change To Liabilities 11M 42M -31M -17M
Change To Inventory -67M -2M 1M 4M
Total Cash From Operating Activities 352M 338M 352M 326M
Capital Expenditures -114M -254M -195M -93M
Investments 10M 61M 4M -50M
Other Cashflows From Investing Activities 91M -70M 21M -35M
Total Cashflows From Investing Activities -534M -296M -194M 63M
Dividends Paid -232M -221M -214M -208M
Net Borrowings 223M 263M 41M -127M
Total Cash From Financing Activities 84M 42M -173M -335M
Change In Cash -98M 84M -15M 89M
Issuance Of Stock 93M 93M 93M 93M